Wheat yesterday traded with the negative node and settled -0.9% down at 1537 tracking weak spot demand and profit booking after prices gained in the wake of strong import demand from Malaysia along with possibility of weak production status in major wheat producing states. Malaysian Agriculture minister talked to food minister K.V. Thomas in this regard. Currently, it is importing Indian Wheat through private channel on limited basis. Malaysian technical team is likely to visit soon here to examine quality. Wheat exports from India have picked up on rising demand amid squeeze in global supplies. So far, the total exports under open general license have touched 6.3 million tones. Global wheat supplies are projected 6.2 million tons lower in 2012/13 by World Agricultural Supply and Demand Estimates (WASDE). The fall in supply is because of lower production for Australia, Russia, and EU-27. Production for Australia is lowered 3.0 million tons as a continuation of dryness through September during critical flowering and grain fill stages has reduced yield potential for this year’s crop. In Delhi wheat prices gained 6.1 rupee to end at 1586.65 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1525 after opening at 1540, and finally settled at 1537. For today's session market is looking to take support at 1525, a break below could see a test of 1513 and where as resistance is now likely to be seen at 1549, a move above could see prices testing 1561.

Trading Ideas:

Wheat  trading range for the day is 1513-1561.

Wheat dropped tracking weak spot demand and profit booking after prices gained in the wake of strong import demand

Malaysia is interested to import Wheat through diplomatic channel from India on long term basis.

Global wheat supplies are projected 6.2 million tons lower in 2012/13 by WASDE.

In Delhi wheat prices gained 6.1 rupee to end at 1586.65 rupees per 10 kg.