Wheat yesterday traded with the positive node and settled 1.95% up at 1305 due to rising spot demand after India has allowed 2 million tonnes of Wheat exports. India has allowed 2 million tonnes of Wheat exports from government warehouses as part of a strategy to trim bulging stocks to avoid the grains getting rotten. India, the world's second biggest wheat producer, has been struggling to manage huge stocks due to record harvests in recent years. On June 1, wheat stocks at government warehouses surged to a record 50.2 million tonnes, well above the official target of 4.0 million tonnes for the quarter ending June 30. As per latest release from Australia Bureau of Statistics (ABS), stated that Australia's wheat grain stored by bulk grain handlers at the end of May 2012 was 15.9 million tonnes which was a decrease of 3.0 million tonnes (16%) compared to April 2012. The total wheat grain stored in May 2012 was 634 thousand tonnes (4%) more than the amount stored in May 2011. The total of wheat grain exported in May 2012 was 2.3 million tonnes which was 459 thousand tonnes (or 25%) more than May 2011. In Delhi wheat prices dropped -1.25 rupee to end at 1220.25 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1285 after opening at 1290, and finally settled at 1305. For today's session market is looking to take support at 1288.3, a break below could see a test of 1271.7 and where as resistance is now likely to be seen at 1318.3, a move above could see prices testing 1331.7.

Trading Ideas:

Wheat trading range for the day is 1272-1332.

Wheat gained due to rising spot demand after India has allowed 2 million tonnes of wheat exports.

India has allowed 2 mln tns of wheat exports from government warehouses as part of a strategy to trim bulging stocks

Wheat stocks at government warehouses surged to a record 50.2 mln tns, well above the official target of 4.0 mln tns

In Delhi wheat prices dropped -1.25 rupee to end at 1220.25 rupees per 10 kg.