India: Wheat tumbles on global cues

Wheat yesterday traded with the negative node and settled -0.5% down at 1199. The International Grains Council said it has cut its forecast for the 2011/12 global wheat crop by 5 million tonnes to 667 million, citing adverse weather in the European Union and the United States.

Procurement by government agencies has reached a record this year at 25.47 million tonnes as against the previous record of 25.38 million tonnes achieved during 2009-10.

In Delhi wheat prices dropped -4.1 rupee to end at 1187.5 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1197 after opening at 1205, and finally settled at 1199.

For today's session market is looking to take support at 1195.7, a break below could see a test of 1192.3 and where as resistance is now likely to be seen at 1203.7, a move above could see prices testing 1208.3.

Trading Ideas:

Wheat trading range is 1192.3-1208.3.
IGC said it has cut its forecast for the 2011/12 global wheat crop by 5 million tonnes to 667 million
Wheat is having resistance at 1203.70 and support at 1195.70 level.
NCDEX accredited warehouses wheat stocks rose by 50 tonnes to 6573 tonnes. 
In Delhi wheat prices dropped -4.1 rupee to end at 1187.5 rupees per 10 kg.

Courtesy: Kedia Commodities

Source: http://www.commodityonline.com/futures-trading/tradingtips/Wheat-tumbles-on-global-cues-13211.html