Wheat yesterday traded with the positive node and settled 0.41% up at 1466 on some buying support tracking firm spot demand after prices dropped on an expected rise in production amid signs of improvement in supplies in spot markets. The government is sitting over huge stocks, more than four times the target of 8.2 million tonnes, and traders expect it to offload some of the stocks in the open market and allow additional exports to create space for the new season crop. The government also needs to make way for the record 40 million tonnes of wheat it is expected to buy from local farmers. After lifting a 4-year-old ban on wheat exports by private traders in 2011, last year the government approved 4.5 million tonnes of exports from its overflowing warehouses, and more than 2 million tonnes of this total has yet to be shipped. India grows one wheat crop, which is planted in November-December and harvested in April-May. Sources expect the government to sell wheat in higher quantities in the open market, which could weigh on prices. In Delhi wheat prices dropped -0.85 rupee to end at 1587.5 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1452 after opening at 1457, and finally settled at 1466. For today's session market is looking to take support at 1456.7, a break below could see a test of 1447.3 and where as resistance is now likely to be seen at 1470.7, a move above could see prices testing 1475.3.

Trading Ideas:

Wheat  trading range for the day is 1447-1475.

Wheat gains on some buying support tracking firm spot demand after prices dropped on an expected rise in production.

The government is sitting over huge stocks, more than four times the target of 8.2 million tonnes.

Government needs to make way for the record 40 million tonnes of wheat it is expected to buy from local farmers

In Delhi wheat prices dropped -0.85 rupee to end at 1587.5 rupees per 10 kg.