NCDEX Tips

Buoyancy is likely to persist in wheat market due to restricted supplies of wheat from FCI warehouses against strong export demand. The NCDEX futures spurted by almost Rs 15 per quintal in the last trading.
Market sources suggested that poor supplies of wheat from warehouses along with lower stocks in private warehouses propelled the buoyancy in wheat market. Delay in release excess grain stocks under the Open Market Sale Scheme (OMSS) by government has augmented the artificial scarcity of wheat in local mandies. Though, centre has wheat stocks of 40.5 million tonne at the start of this month against the buffer norm of11 million tonne as on 1ST October 2012.
The spot prices of wheat increased by almost Rs 15 per quintal in the entire major mandies in the last trading. The spot prices of Lawrence Road were trading at Rs 1635-1650 per quintal, up Rs 20 per quintal in the last day.
The NCDEX November futures surged by almost Rs 15 per quintal today to settle at Rs 1587 per quintal. The contract added 120 positions in open interest indicating fresh buying by traders. Technically, prices are likely to gather some buying around Rs 1565-1570 per quintal while resistances are likely at Rs 1610-1615 per quintal in the short term.