Wheat futures traded range bound and ended on a slightly negative note during previous session. The March contract on MCX exchange traded in a range of 1130 to 1136 levels and ended the session at 1134.8 levels with a negative change of 0.46 per cent

Outlook:

Wheat may open up as the government is planning to increase the prices of wheat and rice sold under Public distribution system, but later may resume its downtrend its bearish fundamentals

The government is planning to hike the prices of wheat and rice sold through ration shops to Rs 11 a kg and Rs 15.37 a kg, respectively

Also, despite huge stocks and lack of adequate storage facility, the central government has decided to continue with ban on exports at present, much against the expectations of traders

Earlier, Indian wheat traders were expecting the world's second biggest grains producer to export between 2-3 million tonnes of wheat this year to get rid of swelling stocks ahead of the new procurement

With the National Food Security Bill that assures 25 kg of wheat or rice a month to Below Poverty Line people, the government would rather hold on to stocks than risk depletion and pay compensation to families, according to media reports

India's wheat stocks as at March 1 were at 18.4 million tonnes against a target of 8.2 million tonnes

Courtesy: Kedia Commodities

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