Wheat yesterday traded with the positive node and settled 0.44% up at 1376 on some short covering tracking spot prices but prices likely to be weighed on an improvement in rains and subsequent decline in the prices of other farm commodities. Indian state trading company PEC has issued an international tender to export 125,000 tonnes of milling wheat for delivery in October. Wheat prices are likely to fall as fresh buying has stopped on market talks that government might curb shipments by private traders. India stands to benefit from higher global wheat prices currently if it manages to seal deals through its three tenders, issued just days after the country's cabinet approved export of 2 million tonnes of wheat. Traders are worried that as soon as prices of wheat start rising in local market, government could impose restriction on shipments and this has dampened the spirit. India lifted a four-year ban on wheat exports in September, but private shipments from the South Asian nation have picked up only in recent weeks after a rally in global prices and a weaker rupee made Indian wheat competitive in the world market. In Delhi wheat prices gained 12.25 rupee to end at 1420.9 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1361 after opening at 1367, and finally settled at 1376. For today's session market is looking to take support at 1363, a break below could see a test of 1350 and where as resistance is now likely to be seen at 1387, a move above could see prices testing 1398.
Trading Ideas:
Wheat trading range for the day is 1350-1398.
Wheat ended with gains on some short covering tracking spot prices
Prices to be weighed down on improvement in rains and subsequent decline in prices of other farm commodities
Wheat prices are likely to fall as fresh buying has stopped on talks that government might curb shipments
In Delhi wheat prices gained 12.25 rupee to end at 1420.9 rupees per 10 kg.
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