Wheat yesterday settled down -0.74% at 1617 tracking weakness in spot demand on account of easy availability and low off-take. Strong production estimates in the current year also affected the wheat prices. The sources also suggested that the overall wheat supplies for current year is expected to be around 80-85 million tonnes against 93-94 million tonnes that was expected by the government. The strong decline is mainly on the heels of restricted supplies of wheat by farmers at major mandies. The majority of the farmers are expecting strong surge in wheat demand in the lean arrival period. As per the latest release from 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. India's wheat procurement for 2013-14 marketing year (which is started on April 1) may decline to 26-28 mn tons, a fall of 10-12 mn tons when compared to the last year. However, the figures are less than expected sum of 44 mn tons. In Delhi wheat prices dropped -9 rupee to end at 1605 rupees per 10 kg. Now Wheat is getting support at 1609 and below same could see a test of 1602 level, And resistance is now likely to be seen at 1628, a move above could see prices testing 1640.

Trading Ideas:

Wheat trading range for the day is 1620-1640.

Wheat ended with losses tracking weakness in spot demand on account of easy availability and low off-take.

Strong production estimates in the current year also affected the wheat prices.

NCDEX accredited warehouses wheat stocks gained by 951 tonnes to 13936 tonnes.