Wheat rises on short covering

Wheat futures closed positive on Saturday due to short covering on the previous fall. The arrivals were lower across the spot markets due to unfavorable weather conditions.
The nominal gain in prices was supported by the arrivals which are yet to gain momentum. The concerns about the slow progress of the harvesting activities also kept the prices positive.
The decrease in the prices, volume and open interest indicates that the prices might be positive for the day. The basis of the wheat prices is increasing which is expected to continue for the day.
Outlook
Wheat futures are forecasted to open positive while resume the down trend. Recovery in the weather conditions is expected to support the harvesting activities and also lead to increase in the arrivals across the spot markets.
According to the third advance estimates the production of wheat is expected to be around 84.2 million tons which might keep the prices under pressure. The government has procured 4.72 lakh tonnes of wheat so far, which is lower by 52 per cent from the year-ago period.
According to news sources, only 329 tonnes of wheat has arrived in Haryana mandis compared with 2.07 lakh tonnes in the year ago period.
Courtesy: Karvy Commtrade Ltd.

(Source: http://www.commodityonline.com/futures-trading/technical/Wheat-rises-on-short-covering-23144.html)