Wheat yesterday traded with the positive node and settled 0.34% up at 1185 on buying by government agencies and on value buying after a sharp decline in its prices in April. India is expected to produce a record 90.23 million tonnes of wheat in 2012, Farm Minister Sharad Pawar said. The estimated output is higher than the 86.87 million tonnes produced in the previous year. India, the world's second biggest producer, consumes about 76 million tonnes of wheat a year. The government usually buys wheat from farmers for its welfare schemes through its agencies at pre-agreed rates known as minimum support prices. Buying by government agencies such Food Corporation of India is also supporting the prices. India grows one wheat crop in a year, which is planted in November-December and harvested in March-April. As per latest release from Australia Bureau of Statistics (ABARE), the wheat grain stored by bulk grain handlers at the end of March 2012 was 21.3 million tonnes which was a decrease of 2 million tonnes (9%) compared to February 2012. The total wheat grain stored in March 2012 was 2.5 million tonnes (13.5%) more than the amount stored in March 2011. In Delhi wheat prices dropped -3.05 rupee to end at 1251.95 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1179 after opening at 1181, and finally settled at 1185. For today's session market is looking to take support at 1180.3, a break below could see a test of 1175.7 and where as resistance is now likely to be seen at 1188.3, a move above could see prices testing 1191.7.

Trading Ideas:

Wheat  trading range for the day is 1176-1192.

Wheat ended with gains on buying by government agencies and on value buying

India, the world's second biggest producer, consumes about 76 million tonnes of wheat a year.

Buying by government agencies such Food Corporation of India is also supporting the prices.

In Delhi wheat prices dropped -3.05 rupee to end at 1251.95 rupees per 10 kg.