Wheat tumbles on production estimates

Wheat futures traded slightly positive on Thursday in a very narrow range. The movement was restricted by the revised production estimates and the sluggish spot market activities. This kept the prices away from any steep losses or gains.
U.S. wheat futures declined towards the yesterdays closing due to the strong dollar and the liquidation f the positions. There are no fundamentals which is supporting the fall.
The fundamentals are 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 volume while the open interest 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 open positive and resume the down trend as the prices don’t find any support from the spot markets. Currently the CBOT prices are trading negative by 0.4%.
Fundamentals
The demand and the arrivals across the spot markets are not much prominent. The acreage under wheat has in-creased 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-tumbles-on-production-estimates-21868.html)