Wheat yesterday traded with the positive node and settled 0.24% up at 1255 on some buying support but higher stocks with the government and increase in area under cultivation in the current winter sowing season limited the gains.
Government agencies such as Food Corporation of India buys Wheat from farmers at pre-agreed rates for distribution among poor at lower than market rates.
India's Jan. 1 wheat stocks in the government warehouses stood at 25.7 million tonnes, more than three times the official target for the quarter ending March 31, government data showed.
Harvesting of the grain in India could rise this year as sowing has increased though there are some concerns regarding yields due to recent decline in temperature, which could adversely impact plant growth.
Wheat sowing in India has been completed in 29.53 million hectares, up from 29.16 million hectares in the previous year, farm ministry data showed.
In Delhi wheat prices gained1.35 rupee to end at 1240.75 rupees per 10 kg.
In yesterday's trading session Wheat has touched the low of 1250 after opening at 1250, and finally settled at 1255.
For today's session market is looking to take support at 1251, a break below could see a test of 1247 and where as resistance is now likely to be seen at 1258, a move above could see prices testing 1261.
Trading Ideas:
Wheat trading range is 1247-1261.
Wheat gained on some buying support but higher stocks with the government limited the gains
Wheat sowing in India has been completed in 29.53 million hectares, up from 29.16 million hectares
India's Jan. 1 wheat stocks in the government warehouses stood at 25.7 million tonnes
In Delhi wheat prices gained1.35 rupee to end at 1240.75 rupees per 10 kg.
Courtesy: Kedia Commodities
Looking for a trading partner?visit commodityonline.com/franchisee
