Wheat prices may firm up

WEEKLY COMMODITIES OUTLOOK

Wheat: Seen firm. Prices are on an uptrend following expectation that festive demand is putting pressure on the tight supply situation this year.

Further, traders expect flour millers to sign up for the next six months' supply over the next fortnight, following which market prices are seen higher.

Delhi market is also witnessing demand from South India though its not the usual as last year following tighter margins. Even regular buyers are turning to the original Uttar Pradesh mandis like Kanpur," said Ramesh Goel, a Delhi-based trader.

On Saturday, wheat spot prices (ex-Delhi) peaked at Rs 825 per 100 kg. In the current week, NCDEX November wheat contract is likely to trade between Rs 822-831 per 100 kg and December contract between Rs 829-840 per 100 kg.

Chana (chick pea): Range-bound and supported at current levels. Current tight supply situation vis-a-vis low festival demand is seen keeping the prices supported at current levels during the coming week, traders and analysts said.

"In most parts of the country, Diwali demand has been weak so prices are not getting the required thrust. The retail buying has as a result declined. Reason for this can be a possible change in preference or increased consumption of vegetables. On the supply side, situation is tighter than before," said a Mumbai-based analyst.

Overseas kabuli chickpea markets is likely to remain strong against limited availability from Mexico, United States, Canada, Iran and Turkey.

Following this, NCDEX November and December contracts are seen supported at current levels. Sothe movement in chana prices is expected, more or less, to be rangebound.

NCDEX November contract is seen trading between Rs 1,950-2,000 per 100 kg. However, weakness in January and February contracts is likely to continue as market expects stocks may deplete considerably before arrivals hit the market by February.

Gold: Seen flat-to-weak. Following low physical demand"�overseas as well as domestic"�the yellow metal has started losing its sheen. Overseas, funds are seen profit-taking at current levels following which gold prices are falling. The continued build up in speculative long positions make the gold prices heavy on the top and this led to the funds' selling.

Domestic festive demand has remained due to high prices till last week and with prices likely to go down, gold buying around Diwali will begin. With gold getting support from the rising inflation risk, analysts expect prices to find support at $445 an ounce level.

This week's most vital data is the third quarter GDP and personal spending of the US, scheduled for release towards the end of the week. This data is expected to showcase the effect of recent hurricanes on the US economy. At 1645 IST, overseas spot gold traded at $465.35 an ounce, down from $471 a week earlier. Buy on dips.