Wheat gains tracking firm spot demand after good gains in the last session though the selling pressure in spot markets, owing to the Food Corporation of India offloading. The demand remains steady ahead of the peak festive season and could pick up in case prices fall further. FCI selling has had a considerable effect on the proceedings in what is normally a busy season. With a view to offload surplus stocks in the Central Pool and to increase availability in the market, the government has released 26.02 lakh tonnes of wheat for tender sale to bulk consumers and sale to small private traders from its godowns by FCI under Open Market Sale Scheme (Domestic) during July and August. India's wheat stocks at government warehouses on Aug. 1 were 47.5 million tonnes, over three times the official target of 17.1 million tonnes for the quarter ending September. The government is likely to release around 1.5 million tonnes of wheat from its warehouses for sale in the open market. However, higher buying by government agencies left little wheat for others, and after the end of the arrival season mills were scrambling to secure supplies, thus pushing the prices up in local markets. Most millers in India stayed away from the market during the arrival season, expecting a fall in prices after the end of the government's buying programme. In Delhi wheat prices gained 13.75 rupee to end at 1571.25 rupees per 10 kg.

Trading Ideas:

Wheat trading range for the day is 1520-1580.

Wheat gains tracking firm spot demand after good gains in the last session though the selling pressure in spot markets

The demand remains steady ahead of the peak festive season and could pick up in case prices fall further.

FCI selling has had a considerable effect on the proceedings in what is normally a busy season.

In Delhi wheat prices gained 13.75 rupee to end at 1571.25 rupees per 10 kg.