Wheat yesterday settled up 0.38% at 1595 tracking firmness in spot demand on low level buying after prices dropped in last some sessions due to ample supply in the major mandis as well as strong production estimates for the current year. India's wheat production is estimated at 87 mn tons this year lower when compared to the India's latest estimate of 93.6 mn tons, according to the data released by the United States Department of Agriculture (USDA). Global wheat production is expected to touch 695.9 mn tons in 2013-2014 down when compared to previous year's 655.6 mn tons, USDA report said. India's wheat procurement for 2013-14 marketing year (which is started on April 1) may decline to 26-28 mn tons, a fall of 10-12 mn tons when compared to the last year. However, the figures are less than expected sum of 44 mn tons. During ongoing Rabi Marketing Season, India Government agencies have procured more than 234 lakh tonne wheat. As per data available from the fields till 10 May, 2013, total wheat procured during the season in various states is 234, 54,846 tonnes. So far Punjab has led the procurement 105,90,390 tonne followed by Haryana with 57,95,213 tonne and Madhya Pradesh with 56,25,527 tonne. Rajasthan and UP also made significant procurement during the season with 9,55,765 tonne 4,75,416 tonne respectively. In Delhi wheat prices gained 4 rupee to end at 1590 rupees per 10 kg. Technically market is under short covering as market has witnessed edged up in open interest by -6.36% to settled at 17520 while prices up 6 rupee, now Wheat is getting support at 1585 and below same could see a test of 1575 level, And resistance is now likely to be seen at 1604, a move above could see prices testing 1613.

Trading Ideas:

Wheat trading range for the day is 1575-1613.

Wheat gains tracking firmness in spot demand on low level buying after prices dropped in last some sessions due to ample supply

India's wheat production is estimated at 87 mn tons this year lower when compared to the India's latest estimate of 93.6 mn tons.

Rajasthan and UP made significant procurement during the season with 9,55,765 tonne 4,75,416 tonne respectively.

In Delhi wheat prices gained 0.251572327044025 rupee to end at 1590 rupees per 10 kg.