Wheat surges on domestic demand

Wheat futures traded positive on Wednesday due to emergence of fresh buying on the futures platform. The movement was restricted to a very narrow range as the spot market activities were sluggish across the major markets. The absence of the buyers kept the spot prices steady.
U.S. wheat futures rallied to their highest point in nearly 30 months on global supply concerns. CBOT March wheat ended 11 3/4 cents or 2.4% higher at $8.86 a bushel.
Wheat futures further strengthened due to demand potential from North Africa and Middle East countries. UN reports of the potential crisis in china due to drought in the wheat growing areas supported the CBOT wheat futures to rally.
The increase in the prices and open interest while volume is decreasing indicates that the prices be subjected to correction which might be good buy point for the uptrend. The basis of the wheat prices is recovering which is expected to continue for the day.
Outlook
The wheat futures are anticipated to continue the positive trend for the day. Fresh buying might continue for the day that might keep the market positive for the day. Currently the CBOT prices are trading negative by 0.2%.
Fundamentals
The demand and the arrivals across the spot markets are much prominent. The acreage under wheat has increased by 9 lakh ha in the current rabi season. According to second advance estimates the production of wheat is estimated at 81.47 million tons compared to 80.80 million tons last year.

(Source: http://www.commodityonline.com/futures-trading/technical/Wheat-surges-on-domestic-demand-21831.html)