WHEAT TO REMAIN SUPPORTIVE ON STRONG FUNDAMENTALS
Date: 23/3/2012
Wheat futures are likely to gather some buying at lower levels due to possibility of removal in wheat exports products along with hike in wheat minimum support price in Uttar Pradesh . The NCDEX futures are likely to garner some supports around Ra1235-1240 per quintal in the near term.
As per latest update from Vietnam Commercial Affairs Office in India, the Indian government is likely to withdraw the export limits from wheat product exports in the near term due to expectation of bumper production in the current year. According to the official data , India has exported 1.27 lakh tonnes of wheat products till January 23, 2012 against the original 650,000-ton limit. These were exported in the form of semolina and wheat flour.
Moreover, Uttar Pradesh Government has increased the Minimum Support Price of wheat from R 1,080 per quintal to R 1,284 per quintal for the current marketing season ( April- June end ). This might provide some supports to the prices at lower levels. Uttar Pradesh government is procuring around 10 lakh tonnes of wheat during the marketing season.
Consequently, the NCDEX Wheat April futures gained by almost R 5 per quintal today to trade at R 1248 per quintal. Technically , prices are likely to garner some buying around R 1235-1240 per quintal while resistances are likely at R 1265-1268 per quintal in the near term.
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