Wheat yesterday traded with the positive node and settled 0.52% up at 1535 continuing its positive trend tracking firmness in spot demand after prices dropped in expectation of a higher new crop. Wheat procurement in the 2013-14 crop marketing year that started on April 1 is expected to culminate at 26-28 million tonnes (mt), a good 10-12 mt less than last year and almost 60 per cent less than the initial estimate of 44 mt. Madhya Pradesh had fixed a target of purchasing nine mt of wheat this year, of which till Wednesday, it has managed to purchase around 5.87 mt. The average daily wheat arrival in all mandis across the country last year till mid-May was around 890,000 tonnes, while this year, it has fallen to almost 230,000 tonnes. Production in the year ending June may exceed 94.9 million tonnes harvested a year earlier. The agriculture ministry predicts the crop to drop to 92.3 million tonnes this year. A bigger harvest may prompt India to increase exports as it runs out of space to store the grain, potentially reducing global food costs, which fell for a fifth month in February. The country has approved shipments of 9.5 million tonnes from state reserves since July as inventories expanded, according to the food ministry. In Delhi wheat prices gained10.9 rupee to end at 1500 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1529 after opening at 1535, and finally settled at 1535. For today's session market is looking to take support at 1529, a break below could see a test of 1523 and where as resistance is now likely to be seen at 1541, a move above could see prices testing 1547.

Trading Ideas:

Wheat  trading range for the day is 1523-1547.

Wheat gains continuing its positive trend tracking firmness in spot demand after prices dropped in expectation of a higher new crop.

Wheat procurement in the 2013-14 crop marketing year that started on April 1 is expected to culminate at 26-28 million tonnes.

The average daily wheat arrival in all mandis across the country last year till mid-May was around 890,000 tonnes.

In Delhi wheat prices gained 10.9 rupee to end at 1500 rupees per 10 kg.