Wheat yesterday traded with the negative node and settled -0.21% down at 1138.6 and prices are expected to remain steady as prices have touched bottom and are trading below government-set prices and a further correction is unlikely. Higher stock position with the government due to a record harvest in 2010/11 season is hurting the sentiment and is preventing prices from going up. On July 1, India's wheat stocks in government warehouses were 37.1 million tonnes, well over its target of 17.1 million. India's wheat output for 2010/11 season is estimated to hit a record high of 84.27 million tonnes. The wheat crop in parts of Argentina's top producing province is starting to show the impact of dry and chilly weather in recent weeks.  Argentina, a leading global wheat exporter, has yet to forecast 2011/12 output, but the U.S. Department of Agriculture (USDA) sees production dipping to 13.5 million tonnes from 15 million last season. In Delhi wheat prices dropped -2.5 rupee to end at 1147.5 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1136 after opening at 1140, and finally settled at 1138.6. For today's session market is looking to take support at 1135.5, a break below could see a test of 1132.3 and where as resistance is now likely to be seen at 1142.3, a move above could see prices testing 1145.9.

Trading Ideas:

Wheat trading range is 1132.3-1145.9.

Wheat prices are expected to remain steady as prices have touched bottom and trading below gavt prices

India's wheat output for 2010/11 season is estimated to hit a record high of 84.27 million tonnes.

Dry weather starts to hamper Argentine wheat

In Delhi wheat prices dropped -2.5 rupee to end at 1147.5 rupees per 10 kg.