Wheat yesterday traded with the positive node and settled 0.69% up at 1175 due to possibility of strong wheat exports from India. Therefore, possibility of strong exports from India might also encourage the wheat demand at lower levels. According to reports, wheat future fell after climbing to a six week high due to profit booking by the traders. Rising fear of wheat crop damages due the dry weather in US and in Russia is likely to support the price upwards. According to reports, India government is planning to export around 10 million tons of wheat to free the warehouses to accommodate the current paddy production. India is expected to produce around 90 million tons of wheat and
103.41 million tons of rice for 2011-12. India had around 19.9 million tonnes of Wheat in government warehouses on April 1, nearly five times the official target of 4.0 million tonnes for the quarter ending June 30, government sources said last month. India has exported only about 830,000 tonnes of Wheat since September when the government freed up exports. The estimated output is higher than the 86.87 million tonnes produced in the previous year. In Delhi wheat prices gained 0.6 rupee to end at 1233 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1170 after opening at 1173, and finally settled at 1175. For today's session market is looking to take support at 1170.7, a break below could see a test of 1166.3 and where as resistance is now likely to be seen at 1178.7, a move above could see prices testing 1182.3.

Trading Ideas:

Wheat trading range for the day is 1166-1182.

Wheat remains firm due to possibility of strong wheat exports from India.

Government plans to export 4 mln mt tns of wheat from government stockpiles due to allow strong harvest.

NCDEX accredited warehouses wheat stocks gained by 672 tonnes to 10317 tonnes.

In Delhi wheat prices gained 0.6 rupee to end at 1233 rupees per 10 kg.