Wheat recovers on active buying

Wheat futures recovered from the previous fall on Tuesday as some buying at futures supported the prices. Short covering supported the prices to end the day positive. Higher production estimates, good crop conditions and the sluggish spot market activities were indifferent to the futures price movement.
U.S. wheat futures ended lower on profit booking at the futures. The recovering weather conditions might help the crop across the world to recover erasing concerns about the lower output and supply crunch. Demand at the futures has slowed down as the prices touched two and half year highs recently.
The increase in the prices while volume and open interest from yesterday indicates that the prices are likely to remain bullish for the day. The basis of the wheat prices is increasing which is expected to continue for the day.
Outlook
The wheat futures are expected to continue the positive trend for the day. Short covering at the futures platform is expected to support the prices. Currently the CBOT prices are trading marginally positive by 0.4%.
Fundamentals
Subdued demand and lower arrivals are reported across the spot markets. The acreage under wheat has increased by 9 lakh ha in the current rabi season. According to second advance estimates the production of wheat is estimated at 81.47 million tons compared to 80.80 million tons last year.

(Source: http://www.commodityonline.com/futures-trading/technical/Wheat-recovers-on-active-buying-21973.html)