Wheat yesterday settled down -1.06% at 1581 as due to sluggish domestic demand coupled with ample availability pulled wheat prices. There seems no wheat export opportunity from India as of now due to higher prices despite of weak rupee. The government of India permitted an extra 2 mn tons of wheat for export earlier in August. India's wheat output is expected touch 93.62 mn tons in 2013, as per the data released by the Ministry of Agriculture. India's wheat production is expected to fall 92.46 mn tons from its previous estimates of 93.62 mn tons as a result of unfavourable weather conditions in key wheat growing areas of Haryana and Madhya Pradesh, as per government estimates. As per the latest release from the Food Corporation of India (FCI) , the agency has procured around 24 million tonnes of wheat from all the producing states, down almost 17 % from the corresponding period last year the. Traders estimated that India's overall procurement is expected to be around 25-26 million tonnes against the initial target of 44 million tonnes. Wheat procurement by India has risen by 12.5% to 17.11 mn tons so far in 2013-14 marketing season that started this month. The wheat procurement stood at 15.21 mn tons during the same period, last year. Technically market is under fresh selling as market has witnessed fell in open interest by 1.86% to settled at 9880 while prices down -17 rupee, now Wheat is getting support at 1564 and below same could see a test of 1547 level, And resistance is now likely to be seen at 1599, a move above could see prices testing 1617.

Trading Ideas:

Wheat trading range for the day is 1545-1615.

Wheat ended with losses as due to sluggish domestic demand coupled with ample availability pulled wheat prices.

There seems no wheat export opportunity from India as of now due to higher prices despite of weak rupee.

India's wheat production is expected to fall 92.46 mn tons from its previous estimates of 93.62 mn tons