Wheat yesterday traded with the negative node and settled -1.03% down at 1543 on expectations that the government could release additional wheat from its warehouses to ease shortages in spot markets. India has decided to make available 1.3 million tonnes of additional wheat for open sale in September and October to ease shortages in spot markets, food ministry sources said on Monday, in a move that is likely to weigh on domestic prices. Millers can now request supplies amounting to up to 1.3 million tonnes out of a total of 3 million tonnes agreed by ministers in July. Until now, only 1.3 million tonnes of that had been released. India, the world's second-largest producer of wheat after China, is sitting on huge wheat stocks after several bumper harvests. Inventories at government warehouses reached of 47.5 million tonnes on Aug. 1, more than three times the official target. 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. In Delhi wheat prices gained 1.95 rupee to end at 1573.2 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1536 after opening at 1557, and finally settled at 1543. For today's session market is looking to take support at 1533, a break below could see a test of 1523 and where as resistance is now likely to be seen at 1556, a move above could see prices testing 1569.

Trading Ideas:

Wheat trading range for the day is 1523-1569.

Wheat fell on expectations that the government could release additional wheat from its warehouses to ease shortages

India has decided to make available 1.3 million tonnes of additional wheat for open sale in September and October

Millers can now request supplies amounting to up to 1.3 million tonnes out of a total of 3 million tonnes agreed by ministers

In Delhi wheat prices gained 1.95 rupee to end at 1573.2 rupees per 10 kg.