Wheat updates

Bullish trend might resume in wheat futures due to possibility of lower production in the current year along with weak arrivals in local mandies. The NCDEX wheat futures augmented by almost Rs 33 per quintal in the last trading.

The Agriculture department has set the 2013 wheat production target at 86 million tonnes against the record harvest of 93.9 million tonnes this year. Government is trying to promote the cultivators to shift area under wheat towards less irrigation- crops, like pulses, corn and other coarse grains.

The spot prices of wheat also increased by almost Rs 50 per quintal in the entire major mandies in the last trading. The spot prices of Lawrence Road were trading at Rs 1560 per quintal , up Rs 50 per quintal with low arrivals of 2500 bags , while spot prices at Kota mandi were trading higher at Rs 1560-1600 per quintal with the total arrivals of 3500 bags.

The NCDEX November wheat contract increased by almost Rs 33 per quintal to settle at Rs 1545 per quintal in the last trading. The contract pared 300 positions in open interest indicating short covering by speculators and traders. Technically, prices are likely to witness some buying around Rs 1532-1535 per quintal while resistances are likely at Rs 1562-1570 per quintal in the short term.

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