Wheat yesterday traded with the negative node and settled -0.16% down at 1230 on favourable weather in key growing areas, which brightened the prospects of a record harvest for a second year running, and an expected rise in arrivals in spot markets from the new season crop.
Wheat arrivals from western Gujarat and the central Madhya Pradesh states are likely to reach the markets next week.
India's Jan. 1 Wheat stocks at government warehouses were 25.7 million tonnes, more than three times the official target for the quarter ending March 31.
As per the latest release from Australia Bureau of Statistics, Australia's bulk storage of wheat grain in January 2012 increased by 9.81 lakh tonnes (4%) to 256 lakh tonnes from December 2011. This was 34 lakh tonnes (16%) higher than the amount stored in January 2011.
The improvement in the new season's wheat harvest has continued in January 2012, with a further rise in the volume of quality wheat grain.
In Delhi wheat prices gained 3.75 rupee to end at 1248.75 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1227 after opening at 1230, and finally settled at 1230.
For today's session market is looking to take support at 1227, a break below could see a test of 1224 and where as resistance is now likely to be seen at 1233, a move above could see prices testing 1236.
Trading Ideas:
Wheat trading range for the day is 1224-1236.
Wheat dropped on favourable weather in key growing areas, which brightened the prospects of a record harvest
Wheat arrivals from western Gujarat and the central M.P states are likely to reach the markets next week
India's Jan. 1 wheat stocks at government warehouses were 25.7 mln tns, more than three times official target
In Delhi wheat prices gained3.75 rupee to end at 1248.75 rupees per 10 kg.
Courtesy: Kedia Commodities
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