Wheat trades up on firm demand

Wheat futures traded positive on Monday due to short covering at the futures. The activities across the spot markets were reported normal and the open market sale of the excess stocks of FCI kept the spot prices steady.
Higher production estimates, good crop conditions and the sluggish spot market activities were indifferent to the futures price movement.
The increase in the prices and volume while the open interest is decreasing indicates that the prices might be subjected to steep correction in near term. 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. Extended short covering at the futures platform is anticipated to support the prices. Currently CBOT prices are trading marginally positive by 0.2%.
Fundamentals
Negligible arrivals are reported across the spot markets and the activities are subdued.
According to second advance estimates the production of wheat is estimated at 81.47 million tons compared to 80.80 million tons last year. The current weather conditions is also supporting the good yield of the wheat crop in the current year.

(Source: http://www.commodityonline.com/futures-trading/technical/Wheat-trades-up-on-firm-demand-22082.html)