April 4, 2011
India's wheat futures increase due to active buying
Active buying at the futures platform causes India's wheat futures to trade positive on Saturday (Apr 2).
The rains and hail storms across the Uttar Pradesh and Punjab regions are affecting the harvesting activities and creating concerns about the yields. The arrivals also did not gain momentum which kept the prices slightly positive.
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.
Wheat futures are forecasted to continue the positive trend for the day. The harvesting in Punjab and Uttar Pradesh regions is affected by the rains which is creating concerns about the yield levels and quality of the crop.
The arrivals are yet to gain momentum across the spot markets which might support the prices for the day. The FCI procurement is likely to increase by 16% to 26 million tonnes compared to 22.5 million tonnes last year.
The export decisions are on hold till May until the FCI procurement is completed across the spot markets.
