India: Wheat plunges on production estimates

Wheat futures opened positive on Monday while the trend did not survive. The prices resumed the down trend and closed the day in red. The steady spot prices and the higher crop production expectations kept the pressure on the prices.
The increase in the prices, volume and open interest indicates that the prices might be bullish for the day. The basis of the wheat prices is decreasing which is expected to continue for the day.
Outlook
Wheat futures are forecasted to open down for the day however the movement might be in very narrow range. The progressing harvesting activities and the expectations of the bumper crop still has the pressure on the prices intact. The concerns about the weather which might affect harvesting might prevent any steep fall in the prices.
The arrivals are yet to gain momentum across the spot markets. The FCI procurement is likely to increase by 16% to 26 million ton compared to 22.5 million tons last year. The export decisions are on hold till May until the FCI procurement is completed across the spot markets.

(Source: http://www.commodityonline.com/futures-trading/technical/Wheat-plunges-on-production-estimates-23017.html)