Wheat edges higher; stocks restrict gains
Wheat futures edged higher on Wednesday afternoon on technical buying after the grain shed about 2 percent in the past five sessions.
MUMBAI: India wheat futures edged higher on Wednesday afternoon on technical buying after the grain shed about 2 percent in the past five sessions, analysts said. But, high stocks and a government decision to retain export restrictions kept the upside limited.
"There is a bit of buying today after days of fall, prices may be in the range of 1,220-1,250 (rupees) for next two sessions," said Veeresh Hiremath, senior analyst with Karvy Comtrade. September wheat on the National Commodity and Derivatives Exchange (NCDEX) was trading 0.60 percent higher at 1,235.00 rupees per 100 kg at 3:09 p.m., after hitting a low of 1,221.4 rupees.
"Wheat was very well supported at 1,222, so there is buying happening at support levels," said Chowda Reddy, senior analyst with JRG Wealth Management. India is not planning to lift a ban on exports of wheat and non-basmati rice as food inflation levels have made it necessary to prop up domestic availability, trade minister Anand Sharma said on Monday.
Wheat sowing beginning from October is likely to benefit from recent rains in northern India, the key wheat growing region in the country, the Angel analyst said. Indian government estimated in mid-July India's wheat harvest at a record 80.71 million tonnes.
"There is a bit of buying today after days of fall, prices may be in the range of 1,220-1,250 (rupees) for next two sessions," said Veeresh Hiremath, senior analyst with Karvy Comtrade. September wheat on the National Commodity and Derivatives Exchange (NCDEX) was trading 0.60 percent higher at 1,235.00 rupees per 100 kg at 3:09 p.m., after hitting a low of 1,221.4 rupees.
"Wheat was very well supported at 1,222, so there is buying happening at support levels," said Chowda Reddy, senior analyst with JRG Wealth Management. India is not planning to lift a ban on exports of wheat and non-basmati rice as food inflation levels have made it necessary to prop up domestic availability, trade minister Anand Sharma said on Monday.
Wheat sowing beginning from October is likely to benefit from recent rains in northern India, the key wheat growing region in the country, the Angel analyst said. Indian government estimated in mid-July India's wheat harvest at a record 80.71 million tonnes.
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