Wheat futures declined on Tuesday due to profit booking at the futures. The expectations of the good quality crop across the major growing regions pressurized the prices. Increasing arrivals and the full swing harvesting activities also prompted the profit booking.
The FCI has started procurement across M.P regions from last week. The targeted procurement from M.P is likely to be two fold in the current year in comparison to last year.
The decrease in the prices, volume and open interest are increasing indicates that the prices might turn bullish in short term. The basis of the wheat prices is recovering which is expected to continue for the day.
Outlook
Wheat futures are anticipated to continue the down trend of the day. The increased production estimates and congenial weather conditions for harvesting are affecting market sentiments.
The harvesting in Punjab and U.P regions has started and the arrivals might hit the spot markets from April. The FCI procurement is likely to increase by 16% to 26 million ton compared to 22.5 million tons last year. The activities across the spot markets are reported very sluggish.
(Source: http://www.commodityonline.com/futures-trading/technical/Wheat-tumbles-on-profit-booking-22754.html)
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