Wheat yesterday traded with the negative node and settled -1.7% down at 1154 due to higher production concerns along with sluggish spot demand amid strong wheat stocks in government warehouses. India had around 19.9 million tonnes of Wheat in government warehouses on April 1, nearly five times the official target of 4.0 million tonnes for the quarter ending June 30, government sources said last month. India has exported only about 830,000 tonnes of wheat since September when the government freed up exports. 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's stocks of food grains augmented by 21% to 71.21 million tonnes as of May 1 against 59.2 million tonnes that were reported last year in the same year. FCI stated that the wheat stocks increased to 38.19 million tonnes from 31.37 million tonnes that were reported earlier. Moreover, the latest update for Ministry of Agriculture stated the total production of wheat is likely to 90.83 million tonnes in the current year due to favourable weather condition in the current year. In Delhi wheat prices dropped -3.4 rupee to end at 1236.6 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1152 after opening at 1154, and finally settled at 1154. For today's session market is looking to take support at 1148.3, a break below could see a test of 1142.7 and where as resistance is now likely to be seen at 1163.3, a move above could see prices testing 1172.7.

Trading Ideas:

Wheat  trading range for the day is 1143-1173.

Wheat fell due to higher production concerns along with sluggish spot demand

India had around 19.9 mln tns in government warehouses on April 1, nearly five times the official target

India has exported only about 830,000 tonnes of wheat since September when the government freed up exports

In Delhi wheat prices dropped -3.4 rupee to end at 1236.6 rupees per 10 kg.