Wheat yesterday traded with the negative node and settled -2.43% down at 1487 due to liquidation of government wheat in domestic market along with dearth of buying interest amongst millers and exporters. As per official sources, the Food Ministry is planning to sell additional 5 million tonne wheat in the open market to bulk consumers like flour millers and biscuit makers in order to upload spiraling domestic prices and also offloading the surplus stock at higher levels. If the current wheat proposal approves by government then the total quantity of wheat to be sold would reach 8 million tonne in the current fiscal year. The base prices of the wheat will be Rs 1285 per quintal as decided by the government in August 2012. This will help the government to curb the domestic price escalation of wheat. India is sitting on huge wheat stocks after several bumper harvests. Inventories at government warehouses reached 47.5 million tonnes on Aug. 1, more than three times the official target. Sources expect that the government's move to release 1.3 million tonnes of additional wheat from its stocks and an improvement in rains could weigh on prices. In Delhi wheat prices dropped -30.4 rupee to end at 1500 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1481 after opening at 1518, and finally settled at 1487. For today's session market is looking to take support at 1470, a break below could see a test of 1453 and where as resistance is now likely to be seen at 1515, a move above could see prices testing 1543.

Trading Ideas:

Wheat trading range for the day is 1453-1543.

Wheat dropped from higher levels due to liquidation of government wheat in domestic market

Food Ministry is planning to sell additional 5 million tonne wheat in the open market to bulk consumers

Sources expect that the government's move to release 1.3 million tonnes of additional wheat from its stocks

In Delhi wheat prices dropped -30.4 rupee to end at 1500 rupees per 10 kg.