Wheat yesterday traded with the negative node and settled -2.49% down at 1564 to profit tracking weakness in spot demand. Much to the respite of millers and food manufacturers facing wheat crunch, the government is planning to release 60 lakh tonne wheat in the open market this financial year. The government's godowns are overflowing with grains due to a record carry-forward stock of 20 million tonne and further procurement of 38 million tonne. The government had earlier decided to sell 3 million tonne of wheat in open market in this financial year. As per the latest monthly release from International Grain Council (IGC), the world Wheat production in 2012/13 is placed 3 million tonnes lower than last month at 662 million tonnes. This was 34 million tonnes below last season's record. Millers stayed away from the market during the arrival season, expecting a fall in prices after the end of the government's buying programme. In Delhi wheat prices dropped -45.9 rupee to end at 1625 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1557 after opening at 1605, and finally settled at 1564. For today's session market is looking to take support at 1545.3, a break below could see a test of 1526.7 and where as resistance is now likely to be seen at 1594.3, a move above could see prices testing 1624.7.

Trading Ideas:

Wheat trading range for the day is 1527-1625.

Wheat ended lower due to profit tracking weakness in spot demand.

The government's godowns are overflowing with grains due to a record carry-forward stock of 20 million tonne

The government had earlier decided to sell 3 million tonne of wheat in open market in this financial year.

In Delhi wheat prices dropped -45.9 rupee to end at 1625 rupees per 10 kg.