Wheat yesterday traded with the positive node and settled 1.46% up at 1390 on buying support tracking firm spot demand but upside was limited on fears that the government might intervene to control rising food prices. India's wheat stocks at government warehouses on Aug. 1 were 47.5 million tonnes, more than three times the official target of 17.1 million tonnes for the quarter ending September, government sources said. As pert official data, India has exported over 18 lakh tonne of wheat under OGL (open general license) since September 2011. This controlled measure by government might witness strong stockiest liquidation in local mandies as most of the traders have stocked the commodity with the anticipation of strong export demand. On July 1, government stocks amounted to 49.8 million tonnes, much higher than a target of 17.1 million for the current quarter. India harvests only one wheat crop a year while the new season rice harvest begins in October, swelling stocks which are then drawn on for distribution in government welfare schemes. In Delhi wheat prices dropped -9.05 rupee to end at 1392.75 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1354 after opening at 1360, and finally settled at 1390. For today's session market is looking to take support at 1364.7, a break below could see a test of 1339.3 and where as resistance is now likely to be seen at 1404.7, a move above could see prices testing 1419.3.

Trading Ideas:

Wheat  trading range for the day is 1339-1419.

Wheat ended with good gains on buying support tracking firm spot demand

India's wheat stocks at government warehouses on Aug. 1 were 47.5 million tonnes.

Government stocks amounted to 49.8 mln tns, much higher than a target of 17.1 million for current quarter.

In Delhi wheat prices dropped -9.05 rupee to end at 1392.75 rupees per 10 kg.