Wheat yesterday traded with the negative node and settled -0.76% down at 1176 as easy availability of stock coupled with reduced off- take pulled wheat prices. India will in 2012 pay nearly 10 percent more over the current year to local farmers for buying wheat to ensure better returns to growers as inflation continues around 9 percent, the government had announced last week. India, the world's second
-biggest wheat producer, had recently allowed export of 2 million tonnes of wheat, after a gap of four years, though the move failed to arrest the downtrend in wheat prices. India expects a record wheat harvest of 86 million tonnes in 2012, the farm secretary had said last month, raising hopes of exports for a second straight year from the world's second-biggest producer and consumer of the grain after China. In the current rabi season, wheat has been sown over 12.07 million hectares in the country as against 12.2 million hectares in the previous season, data from farm ministry showed. In Delhi wheat prices gained 0.45 rupee to end at 1190.3 rupees per
10 kg. In yesterday's trading session Wheat has touched the low of 1175 after opening at 1182, and finally settled at 1176. For today's session market is looking to take support at 1173, a break below could see a test of 1170 and where as resistance is now likely to be seen at 1181, a move above could see prices testing 1186.

Trading Ideas:

Wheat trading range is 1170-1186.

Wheat settled -0.76% down as easy availability of stock coupled with reduced off-take pulled prices

India will in 2012 pay nearly 10 percent more over the current year to local farmers for buying wheat

India expects a record wheat harvest of 86 million tonnes in 2012

In Delhi wheat prices gained0.45 rupee to end at 1190.3 rupees per 10 kg.