Wheat yesterday traded with the positive node and settled 0.55% up at 1460 on short covering after prices dropped on expectations of a bumper crop in 2013 and on a possible drop in export demand with softening global prices. The area under wheat has grown from 37 lh in 2007-08 to 49 lh in 2011-12, while production shot up from six million tonnes to 10.5 million tonnes during the period. MP has emerged as a major procurer of wheat recent years, almost matching the traditional States of Punjab and Haryana. Wheat procurement stood at a record high of 8.5 million tonnes in 2011-12 against 4.90 million tonnes in the previous year. Higher production of wheat could put pressure on the government to sell more in the open market to free space for storing the new season crop and will further drag down prices in local markets. Last month, MMTC floated the tender to sell 150,000 tonnes of wheat for shipments between Feb. 1 and March 1 from the east coast as part of the government's plan to cut stocks at its warehouses. According to the U. S. Department of Agriculture's weekly Export Sales Report, total known outstanding sales and accumulated exports of all classes of wheat for the 2012/13 marketing year, through January 3, 2013 were 19.3 million metric tons (MMT), 3 percent lower than last year's year-to-date total of 20.0 MMT. In yesterday's trading session Wheat has touched the low of 1452 after opening at 1458, and finally settled at 1460. For today's session market is looking to take support at 1446, a break below could see a test of 1432 and where as resistance is now likely to be seen at 1480, a move above could see prices testing 1500.

Trading Ideas:

Wheat trading range for the day is 1432-1500.

Wheat gained on short covering after prices dropped on expectations of a bumper crop in 2013 and on a possible drop in export demand

The area under wheat has grown from 37 lh in 2007-08 to 49 lh in 2011-12, while production shot up from 6 mln tns to 10.5 mln tns

MP has emerged as a major procurer of wheat recent years, almost matching the traditional States of Punjab and Haryana.

In Delhi wheat prices dropped -6.55 rupee to end at 1570 rupees per 10 kg.