Wheat rises on firm demand

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 closed higher on Friday due to concerns of the crop damage across the world and lower production. The export demand and political issues in Egypt also supported the gains. 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 decrease in the prices and volume while the open interest is increasing indicates that the prices are likely to remain bearish for the day. The basis of the wheat prices is declining which is expected to continue for the day.
Outlook

The wheat futures are trade down trend for the day. The increased production estimates and the lower demand across the spot markets is supporting the down trend. Currently the CBOT prices are trading positive by 1.67%.
Fundamentals

The demand and the arrivals across the spot markets is very sluggish. 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-rises-on-firm-demand-21912.html)

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