Wheat trades up on short covering

Wheat futures extended the positive trend on Thursday on extended short covering. The buyers were active at the futures platform on anticipation of the allowing wheat exports. Current lower arrivals from Gujarat and M.P supported the prices to gain.
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 positive and trade in very narrow range for the day. The harvesting in Punjab and U.P regions has started and the arrivals might gain full 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. Considering the exports upto 2 million tons by May is on cards.
Across Gujarat and M.P the arrivals so far have been only 2.4 lakh tonne as compared to 4.93 lakh tonne in the year-ago period. As of now FCI has procured only 2 lakh tones compared to 3.32 lakh tones in year ago period.

(Source: http://www.commodityonline.com/futures-trading/technical/Wheat-trades-up-on-short-covering-22955.html)