Friday, April 15, 2011

India: Wheat movement subdued, prices dull

Wheat futures traded positive on Wednesday due on short covering at the futures. The spot activities were indifferent to the futures price movement as the low quality of the arrivals and the lack of buyers kept the activities subdued.
The concerns of the crop quality are still prevailing across the spot markets as the current arrivals are of higher moisture content.
The increase in the prices while volume and open interest are decreasing indicates that the bearishness in prices is still intact. The basis of the wheat prices is decreasing which is expected to continue for the day.
Outlook
Wheat futures are anticipated open positive for the day. The FCI procurement during the current year as on yester-day is 76% lower compared to last year.
Lower procurement is raising concerns about the actual production figures which might help the prices to gain for the day. Delayed harvesting which has resulted in lower arrivals which are expected to support the prices today.
The concerns of the crop quality might are likely to have negative impact on the prices. According to the third advance estimates the production of wheat is expected to be around 84.2 million tons.
Courtesy: Karvy Commtrade Ltd.