Commodity Tips

Commodity Wheat futures spurted by almost 1% today in the wake of strong import demand from Malaysia along with possibility of weak production status in major wheat producing states. Prices are likely to gather some more buying in the near term.

As per latest release from Food Ministry, Malaysian government has shown strong interest in Indian wheat. This trade can be initiated by long-term contract with India for supply of Indian wheat through diplomatic channel. For this, Malaysian government is also planning to send official intimation to Indian government. Ministry also stated that Over 1.5 million tonne wheat via private trade has already been exported from the country since September 2011.

Moreover, possibility of weak wheat production estimates in some of the major producing states such as Punjab and Haryana might also incite the strong stockiest interest in local mandies. 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.

Consequently, the NCDEX November Wheat contract increased by almost Rs 15 per quintal to trade at Rs 1560 per quintal in today's trading. Technically, prices are likely to test 1570-1575 at the higher side while supports are likely at Rs 1545-1550 per quintal in the near term.