Wheat yesterday settled up 0.45% at 1573 due to weak arrivals of wheat in local mandies along with strong demand of private millers at higher levels. As per the latest release from the Food Corporation of India (FCI) , the agency has procured around 24 million tonnes of wheat from all the producing states, down almost 17 % from the corresponding period last year the. Traders estimated that India's overall procurement is expected to be around 25-26 million tonnes against the initial target of 44 million tonnes. The sources also suggested that the overall wheat supplies for current year is expected to be around 80-85 million tonnes against 93-94 million tonnes that was expected by the government. The strong decline is mainly on the heels of restricted supplies of wheat by farmers at major mandies. The majority of the farmers are expecting strong surge in wheat demand in the lean arrival period. The latest United States Department of Agriculture (USDA ) estimated the wheat exports in 2013-14 at 5 million tonnes , down 1.50 million tonnes from the last year. This is mainly due to poor wheat procurement by government in the current year. USDA estimated the India's 2012/13 July-June wheat export estimate is revised lower to 7.5 million tonnes due to higher domestic prices of wheat. Moreover, poor demand by flour millers in the local mandies might also persist some selling pressure in in the domestic market. Now Wheat is getting support at 1564 and below same could see a test of 1556 level, And resistance is now likely to be seen at 1579, a move above could see prices testing 1586.

Trading Ideas:

Wheat trading range for the day is 1555-1585.

Wheat gains due to weak arrivals of wheat in local mandies along with strong demand of private millers at higher levels

FCI has procured around 24 million tonnes of wheat from all the producing states, down almost 17 percent.

USDA estimated the wheat exports in 2013-14 at 5 million tonnes , down 1.50 million tonnes from the last year.