Wheat yesterday settled down -0.13% at 1584 amid sluggish trading activities at the spot market. Rains in various parts of the country discouraged the normal course of trading and lower demand against sufficient availability continued to weigh on market fundamentals. India's wheat production is expected to fall 92.46 mn tons from its previous estimates of 93.62 mn tons as a result of unfavourable weather conditions in key wheat growing areas of Haryana and Madhya Pradesh, as per government estimates. As per the latest release from the United States Department of Agriculture (USDA), the total global production of wheat in 2013-14 is projected higher by 7.58 million tonnes from the last month to report at 705.38 million tonnes. Global wheat consumption for 2013/14 is raised 6.92 million tons to 706.81 million tons with increases in wheat feeding projected for a number of countries and higher food use expected for India and Iran. Global wheat exports for 2013/14 are raised 4.9 million tons to 154.01 million tonnes with increases for Kazakhstan, the European Union, Ukraine, and Canada totaling 7.0 million tons. Exports are lowered for Argentina and Brazil with reduced production prospects. India exports are also lowered as relatively high internal prices limit export opportunities. Rising world supplies reduce prices and support global consumption growth, thereby limiting the increase in projected 2013/14 global wheat ending stocks to 0.6 million tons to 172.99 million tons. Now Wheat is getting support at 1582 and below same could see a test of 1579 level, And resistance is now likely to be seen at 1588, a move above could see prices testing 1591.

Trading Ideas:

Wheat trading range for the day is 1580-1592.

Wheat settled weak amid sluggish trading activities at the spot market.

Rains in various parts of the country discouraged the normal course of trading and lower demand against sufficient availability

Total global production of wheat in 2013-14 is projected higher by 7.58 million tonnes from the last month