Wheat ended with losses on hopes of higher production due to good monsoon rains. Better crop prospects would help boost stocks at state-run warehouses after the government allowed 9.5 million tonnes of extra sale in the open market in June as part of its efforts to cut down inventories. Exports of about 5 million tonnes of wheat by government-backed trading companies have also helped trim stocks. Wheat stocks at government warehouses were 42.4 million tonnes on July 1 against a target of 17.1 million tonnes, but lower than 44.4 million tonnes. India's wheat stocks at government warehouses fell 4.7 percent from July to 40.4 million tonnes, government data showed, reflecting still overflowing grain silos. India, the world's second biggest grower of wheat and rice, needs to maintain wheat stocks of 17.1 million tonnes for the first quarter of the new crop year from July 1 to run welfare programmes to provide cheap grains to the poor. The Government has set the production target of 259 million tonnes (MT) foodgrains for the year 2013-14. Among the all states, Uttar Pradesh has highest production target of nearly 49 MT, followed by Punjab with 28.8 MT, Andhra Pradesh with 19.2 MT approx, Rajasthan with 19.9 MT, and Haryana with 18.1 MT. Around 1,100 bags of wheat arrived and the stocks were directly offloaded at the mills. Technically market is under long liquidation as market has witnessed fell in open interest by -2.16% to settled at 6350 while prices down -1 rupee, now Wheat is getting support at 1578 and below same could see a test of 1570 level, And resistance is now likely to be seen at 1596, a move above could see prices testing 1606.

Trading Ideas:

Wheat trading range for the day is 1571-1607.

Wheat ended with losses on hopes of higher production due to good monsoon rains.

Better crop prospects would help boost stocks at state-run warehouses after the government allowed 9.5 million tonnes

NCDEX accredited warehouses wheat stocks gained by 18 tonnes to 15897 tonnes.