world wheat prices Wheat gains on strong domestic demand - market Analysis

world wheat prices Wheat gains on strong domestic demand - market Analysis : After witnessing positive movement during January, wheat prices started easing during February. In fact sharp correction is seen during last few days of February due to start of stockiest selling. Physical demand remains steady and buyers are in no hurry to make any extra buying.

Country is expecting yet another bumper production this year too on good production prospects. Weather remains largely favorable for the crop till date and there has not been any report of disease etc.

Minimum support price (MSP) for the year 2010-11 is declared at Rs. 1120/quintal as against Rs.1100 last year. Thus Government made nominal increment in the wheat prices. International wheat market sentiments remained positive due to support from the corn and oilseeds market.

As per the International Grain Council, world wheat production for 2010-11 is estimated to remain at 644 million tons as against 677 million tons during 2009-10. The world consumption is expected to increase at 660 million tons against 650 million tons.

World closing stocks during 2010-11 are also expected to decline at 180 million tons as against 196 million tons during 2009- 10. This indicates that world wheat prices are likely to stay positive in medium term.

Concerns about the next US winter wheat crop, tightening EU export supplies and mixed harvest results in Australia will continue to support the world wheat prices. World wheat trade is expected to rise due to increased feed demand.

Global stocks are forecast to drop due to significant declines in Russia and the EU. So far as Indian scenario is concerned, it is expected that Indian market will witness selling pressure on higher levels till whole March. India keeps wheat production target at 82 million tons for 2011. For the latest updates PRESS CTR + D or visit Stock Market news Today

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