Wheat yesterday settled down -0.89% at 1566 as the market is saddled with huge stocks after the government freed up 9.5 million tonnes of the grain late last month for open market sale. The government offloaded nearly 10 million tonnes of wheat for open market sale in July and the quantity was simply huge. The government decided to offload 10.5 million tonnes of grains, including 500,000 tonnes of rice on the open market, but put off a decision to allow 2 million tonnes of wheat exports. State-run trading companies have already exported 4.5 million tonnes of wheat as a part of efforts to cut down huge stocks at government warehouses. Wheat stocks at government warehouses were 42.4 million tonnes on July 10 against a target of 17.1 million tonnes but lower than 44.4 million tonnes. India is expected to produce 93.62 million tonnes of wheat in 2013, the farm ministry said in a forecast last month. This is the sixth straight year when wheat production is seen exceeding demand. The latest output estimate is lower than last year's record 94.88 million tonnes, but more than the annual consumption of about 76 million tonnes. Technically market is under fresh selling as market has witnessed fell in open interest by 0.49% to settled at 14310 while prices down -14 rupee, now Wheat is getting support at 1557 and below same could see a test of 1549 level, And resistance is now likely to be seen at 1577, a move above could see prices testing 1589.

Trading Ideas:

Wheat trading range for the day is 1549-1589.

Wheat ended with losses as the market is saddled with huge stocks after the government freed up 9.5 mln tns of grain late last month

The government offloaded nearly 10 million tonnes of wheat for open market sale in July and the quantity was simply huge.

Wheat stocks at government warehouses were 42.4 million tonnes against a target of 17.1 million tonnes