Wheat yesterday traded with the negative node and settled -0.76% down at 1179 as speculators reduced their positions following increased supplies in the spot markets amid procurement of grain in the ongoing rabi marketing season, amid slackened demand from flour mills. Slackened demand from flour mills also put pressure on wheat futures prices. Wheat output in India, the world's second-biggest producer, is seen at a record 90.23 million tonnes in 2012, Farm Minister Sharad Pawar said last week, boosting chances of additional shipments. The estimated output is higher than the 86.87 million tonnes the country produced in the previous year. India consumes about 76 million tonnes of wheat a year. It grows one wheat crop, which is planted in November-December and harvested in March-April. Wheat procurement by Punjab government's agencies at 1,759 procurement centres across the state has crossed the 100-lakh-tonne mark. Procurement of 102.19 lakh tonnes was reported in the state till Thursday. A total of about 115 lakh tonnes of wheat is expected to arrive at procurement centres during the current rabi marketing season. In Delhi wheat prices dropped -9.7 rupee to end at 1260 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1178 after opening at 1183, and finally settled at 1179. For today's session market is looking to take support at 1174.3, a break below could see a test of 1169.7 and where as resistance is now likely to be seen at 1187.3, a move above could see prices testing 1195.7.

Trading Ideas:

Wheat  trading range for the day is 1170-1196.

Wheat fell increased supplies in the spot markets amid procurement of grain in the ongoing rabi marketing season

Wheat output in India is seen at a record 90.23 million tonnes in 2012

The estimated output is higher than the 86.87 million tonnes the country produced in the previous year

In Delhi wheat prices dropped -9.7 rupee to end at 1260 rupees per 10 kg.