Wheat yesterday settled down -0.49% at 1628 on weak demand and in expectation of a higher new crop. India's wheat stocks had piled up to 44.4 million tonnes, government sources said, more than a quarter of the world's total, as it fails to meet export targets because of high prices and quality constraints. India uses the stocks to distribute cheap grain in one of the world's biggest food subsidy programmes which is set to be increased further under a proposed new law. The US Department of Agriculture (USDA) has pegged India's wheat production at 87 million tonne (MT) this year, which is lower by 7% from the government's latest estimate of 93.6 MT. The USDA has revised downward India's wheat production estimate from 92 MT to 87 MT due to lower crop yields. Wheat crop was sown in the 2012-13 crop year (July-June) and is being marketed in 2013-14 starting April. India's "marketing year 2013-14 production estimate is revised lower to 87 MT due to lower than anticipated yields in major wheat growing states", it said in its latest report. As per the latest release from the the Food Corporation of India (FCI) , the agency has procured around 24 million tonnes of wheat from all the producing states, down almost 17 % from the corresponding period last year the. Traders estimated that India's overall procurement is expected to be around 25-26 million tonnes against the initial target of 44 million tonnes. In Delhi wheat prices dropped 3 rupee to end at 1614 rupees per 10 kg. Now Wheat is getting support at 1624 and below same could see a test of 1619 level, And resistance is now likely to be seen at 1634, a move above could see prices testing
1639.

Trading Ideas:

Wheat trading range for the day is 1644-1660.

Wheat ended with losses on weak demand and in expectation of a higher new crop.

India's wheat stocks had piled up to 44.4 mln tns more than a quarter of the world's total, as it fails to meet export targets

NCDEX accredited warehouses wheat stocks gained by 762 tonnes to 12985 tonnes.

In Delhi wheat prices dropped -2.5 rupee to end at 1617.5 rupees per 10 kg.