Wheat yesterday traded with the positive node and settled 3.91% up at 1513 on news that India could offer to sell to Iran minimum 1 million tonne (MT) of wheat a year through diplomatic channels but at a commercial price of not less than $300 a tonne. A few months ago, the sanctions-hit Iran had sent a delegation to India to check the quality of Indian wheat. Recently, food minister KV Thomas had said: "Iran had taken samples and has responded positively. It is interested to import wheat from India on a long-term basis." The global prices are very high and 1-2 MT of wheat can go this year, he had said. The International Grains Council (IGC) has trimmed its global wheat production forecast for 2012-13 to 657 million tonnes (mt) due to decline in output in Russia, Australia and Europe. Last month, the London-based organisation had forecast the output at 662 mt for 2012-13, lower than the record output of 696 mt last year. China and India are the top two wheat producing countries in the world. The crop year varies from country to country. In India, wheat sowing for 2012-13 will start from next month and the harvesting will be undertaken from middle of April 2013. India's state-owned trading firm MMTC Ltd has floated a tender to export 35,000 tonnes of wheat for shipments between Nov. 10 and Dec. 10. In Delhi wheat prices gained 18.25 rupee to end at 1494.5 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1454 after opening at 1460, and finally settled at 1513. For today's session market is looking to take support at 1473, a break below could see a test of 1433 and where as resistance is now likely to be seen at 1534, a move above could see prices testing 1555.

Trading Ideas:

Wheat trading range for the day is 1433-1555.

Wheat ended with gains on news that India could offer to sell to Iran minimum 1 million tonne (MT) of wheat a year

India's MMTC invites bids to export 35,000 tonnes of wheat

IGC has trimmed its global wheat production forecast for 2012-13 to 657 million tonnes (mt)

In Delhi wheat prices gained 18.25 rupee to end at 1494.5 rupees per 10 kg.