India: Wheat extends downtrend on arrival pressure

Wheat futures extended the down trend on Tuesday on back of the progressing harvesting activities. The gradually increasing arrival is exerting pressure on the prices.
The buyers are also very lower across the spot markets which are keeping the prices down.
The increase in the prices, volume and open interest are decreasing indicates that the prices might remain positive for the day. The basis of the wheat prices is decreasing which is expected to continue for the day.
Outlook

Wheat futures are likely to trade down side for the day. The weather conditions are supportive for the harvesting activities which are resulting in gradual increase in the arrivals across the spot markets. Bulk buying is still slow across the spot markets which might keep the prices down.
The concerns of yield are still intact as FCI procurement is less compared to last year. According to the third advance estimates the production of wheat is expected to be around 84.2 million tons.
Courtesy: Karvy Commtrade Ltd.

(Source: http://www.commodityonline.com/futures-trading/technical/Wheat-extends-downtrend-on-arrival-pressure-23555.html)