Wheat yesterday traded with the negative node and settled -0.44% down at 1586 tracking weakness in spot market on expectations of higher production. High supplies from new crop kept pressure on the wheat prices. India's wheat procurement for 2013-14 marketing year (which is started on April 1) may decline to 26-28 mn tons, a fall of 10-12 mn tons when compared to the last year. However, the figures are less than expected sum of 44 mn tons. The average daily wheat arrivals in all major mandis across the country have fell to around 230,000 tons till May when compared to 890,000 tons during the same period last year. During ongoing Rabi Marketing Season, India Government agencies have procured more than 234 lakh tonne wheat. As per data available from the fields till 10 May, 2013, total wheat procured during the season in various states is 234, 54,846 tonnes. So far Punjab has led the procurement 105,90,390 tonne followed by Haryana with 57,95,213 tonne and Madhya Pradesh with 56,25,527 tonne. Rajasthan and UP also made significant procurement during the season with 9,55,765 tonne 4,75,416 tonne respectively. As per latest official data, Indian procurement agencies have procured 24.30 million tonnes of wheat. In Delhi wheat prices dropped -1.65 rupee to end at 1575 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1580 after opening at 1590, and finally settled at 1586. For today's session market is looking to take support at 1580.3, a break below could see a test of 1574.7 and where as resistance is now likely to be seen at 1591.3, a move above could see prices testing 1596.7.

Trading Ideas:

Wheat trading range for the day is 1575-1597.

Wheat ended with losses tracking weakness in spot market on expectations of higher production.

High supplies from new crop kept pressure on the wheat prices.

Rajasthan and UP also made significant procurement during the season with 9,55,765 tonne 4,75,416 tonne respectively.

In Delhi wheat prices dropped -1.65 rupee to end at 1575 rupees per 10 kg.