Wheat yesterday traded with the negative node and settled -0.13% down at 1550 on shortages in the spot markets as fresh supplies have dried up and the government, sitting on huge stocks, declines to release additional grain. 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 24.6 rupee to end at 1574.6 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1541 after opening at 1555, and finally settled at 1550. For today's session market is looking to take support at 1539, a break below could see a test of 1528 and where as resistance is now likely to be seen at 1563, a move above could see prices testing 1576.

Trading Ideas:

Wheat  trading range for the day is 1528-1576.

Wheat gained on shortages in the spot markets as fresh supplies have dried up and government sitting on huge stocks

India is sitting on huge wheat stocks after several bumper harvests

Until now, only 1.3 million tonnes of that had been released.

In Delhi wheat prices gained 24.6 rupee to end at 1574.6 rupees per 10 kg.