Wheat yesterday traded with the negative node and settled -0.5% down at 1107.2 on abundant supply and subdued demand. India had recently allowed export of 2 million tonnes of wheat, after a gap of four years. However, the step failed to arrest the downtrend in prices in the domestic market. India's wheat output for 2010/11 season is estimated to hit a record high of 84.27 million tonnes. As of Sept. 1, wheat stocks in the government warehouses were 33.6 million tonnes, more than double the target of 17.1 million tonnes. Rice inventory stood at 22.7 million tonnes against a target of 9.8 million tonnes. Wheat arrivals in India begin in March and peak by mid-April, but were delayed this year as untimely rains in March pushed back harvesting. In Delhi wheat prices dropped -4.2 rupee to end at 1150.4 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1107.2 after opening at 1112, and finally settled at 1107.2. For today's session market is looking to take support at 1104.1, a break below could see a test of 1100.9 and where as resistance is now likely to be seen at 1113.5, a move above could see prices testing 1119.7.

Trading Ideas:

Wheat trading range is 1100.9-1119.7.

Wheat prices ended with negative node on abundant supply and subdued demand

India's wheat output for 2010/11 season is estimated to hit a record high of 84.27 million tonnes

Wheat arrivals in India begin in March and peak by mid-April, but were delayed this year

In Delhi wheat prices dropped -4.2 rupee to end at 1150.4 rupees per 10 kg.