Wheat Commodity Trading

Wheat is a cereal grain that belongs to the grass family of the genus 'Triticum'.
A dry, one seeded fruit named kernel is obtained from this spiky grass like grain, which is ground to make flour and is consumed throughout the world as one of the most important staple food.
Wheat is a globally important source of dietary carbohydrate (starch) and protein (gluten). Its grain is a staple food used to make flour for leavened, flat and steamed breads, biscuits, cookies, cakes, breakfast cereal, pasta, noodles etc and for fermentation to make beer, alcohol, vodka, or biofuel. It is also used for feeding animals to a limited extent.
Wheat requires a cooler weather and a good level of moisture in the early plantation period and once the grain is formed, it needs a warmer weather to dry up.
That is why the best-suited climate needed for the wheat crop to prosper is the temperate climate. In India, wheat is cultivated as a Rabi crop and it is planted in the month of October. It is harvested in the months of April and May.

What makes Wheat good investment?

Wheat is the second largest cereal grain consumed on earth.
Wheat is important especially for making breads and other bakery products as it has got the maximum number of glutens as compared to any other grain.
Wheat is also grown as a forage crop for the livestock.

Why is Wheat a wise investment for an Indian trader?

India produces around 75-80 million tons of wheat every year.
India has the largest area in the world under wheat cultivation. However, due to low productivity it is only the third largest producer after EU-27 and China.
Weather has a profound influence on production, especially in Haryana and Punjab as temperature plays a crucial role in determining the yield.
Wheat is a stable crop in many countries and hence its consumption is directly proportional to the population growth.
Consumption has been constantly increasing during the last 10 years with the increase in population, and alarmingly, the consumption is prepared to shoot up further and is expected to reach up to 775 million tons in 2020
In addition to India, Futures trading in wheat takes place in many of the international commodities exchanges. Most prominent among them are Chicago Board of trade (CBOT), KCBT (Kansas City board of trade) and LIFFE, Paris:

How can Kotak Commodity help me invest in Wheat?

The Kotak Commodity Gateway Account will give you access to research and trading facilities to conduct Wheat trading in India. While SMS alerts and Call & Trade will provide you regular updates on Wheat prices in India, our expert research reports will help you make informed decisions. Our brokerage rates are attractive. The best part is that our Gateway account is a lifetime free trading account.

To learn more about Kotak Commodity Gateway Account, please click here.

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