Wheat yesterday traded with the positive node and settled 0.16% up at 1221 after the government approved export of two million tonnes of its exports. Buoyed by record production of wheat in the country, government's procurement of the key staple food rose by 36 per cent to a record 37.85 million tonnes (mt) in the current marketing season so far. The government had purchased 27.85 mt of wheat in the 2011-12 wheat marketing season (April-March). Wheat purchase in this season has surpassed government's target of 32 mt. As per official data, wheat procurement as on July 3 was 37.85 mt and the arrivals stood at 40.13 mt. Punjab and Haryana have procured nearly 12.83 mt and 8.66 mt of wheat, respectively, in the current season. The Cabinet Committee on Economic Affairs has approved the export of 2 million tonnes of wheat from the Central Pool stocks at a floor price of US$228 (approximately Rs. 12400/-) per ton. In Delhi wheat prices gained by 4 rupees to end at 1219 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1220 after opening at 1223, and finally settled at 1221. For today's session market is looking to take support at 1217.3, a break below could see a test of 1213.7 and where as resistance is now likely to be seen at 1227.3, a move above could see prices testing 1233.7.

Trading Ideas:

Wheat  trading range for the day is 1214-1234.

Wheat settled up after the government approved export of two million tonnes of its exports.

The government had purchased 27.85 mt of wheat in the 2011-12 wheat marketing season.

Cabinet Committee on Economic Affairs has approved the export of 2 mln tns of wheat from the Central Pool stocks

In Delhi wheat prices dropped 0 rupee to end at 1219 rupees per 10 kg.