Wheat yesterday settled down -0.38% at 1553 owing to lack of fresh cues of demand. Demand is likely to improve in coming days because migrant labourers will be here from the neighbouring States for the kharif harvest. Domestic demand is also providing good support to the market and it may rule range-bound for the next few days but within a positive territory. Around 1,000 bags of wheat arrived and stocks were directly offloaded at the mills. The government aims to earn $600 million by exporting 2 million tonnes of wheat from government warehouses. In August, the government allowed the FCI to export 2 million tonnes of wheat as part of its efforts to cut down huge stocks at its warehouses. The government had allowed FCI to export 4.5 million tonnes of wheat of which 4.2 million tonnes have been shipped out, helping the government earn $1.4 billion. The government of India permitted an extra 2 mn tons of wheat for export earlier in August. In June, the government had allowed 9.5 mn tons of wheat for extra sale in the domestic market in an effort to cut its inventories. There seems no wheat export opportunity from India as of now due to higher prices despite of weak rupee. Technically market is under long liquidation as market has witnessed fell in open interest by -2.88% to settled at 6750 while prices down -6 rupee, now Wheat is getting support at 1548 and below same could see a test of 1544 level, And resistance is now likely to be seen at 1561, a move above could see prices testing 1570.

Trading Ideas:

Wheat trading range for the day is 1544-1570.

Wheat ended with losses owing to lack of fresh cues of demand.

The government of India permitted an extra 2 mn tons of wheat for export earlier in August.

Around 1,000 bags of wheat arrived and stocks were directly offloaded at the mills.