Wheat yesterday traded with the negative node and settled -0.51% down at 1175 due to profit booking by the traders on the back of ample stocks along with higher production concerns. Wheat stocks at government warehouses on May 1 were 38.2 million tonnes, more than nine times the official target of 4.0 million tonnes for the quarter ending June 30. India is expected to produce a record 90.23 million tonnes of Wheat in 2012. The estimated output is higher than the 86.87 million tonnes produced in the previous year. Despite the government's decision last September to lift a four-year old ban on wheat exports, traders were not able to ship much due to unattractive global prices. Wheat stocks at government warehouses on May 1 were 38.2 million tonnes, more than nine times the official target of 4.0 million tonnes for the quarter ending June 30. Indian ministers are likely to meet this week to decide whether to export wheat from bulging government stocks to countries such as Iran. The ministers will also discuss the need to give incentives to exports due to lower global prices. In Delhi wheat prices gained 0.5 rupee to end at 1233 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1175 after opening at 1183, and finally settled at 1175. For today's session market is looking to take support at 1172.3, a break below could see a test of 1169.7 and where as resistance is now likely to be seen at 1180.3, a move above could see prices testing 1185.7.

Trading Ideas:

Wheat  trading range for the day is 1171-1187.

Wheat declined on the back of ample stocks along with higher production concerns

Wheat stocks at government warehouses on May 1 were 38.2 mln tns, more than nine times the official target

The estimated output is higher than the 86.87 million tonnes produced in the previous year.

In Delhi wheat prices gained 0.5 rupee to end at 1233 rupees per 10 kg.