Wheat yesterday settled up 0.19% at 1582 tracking firm spot prices after dropping due to weak global demand along with fresh supplies in local mandies. The procurement of wheat has decline by 33% and stood at 25.08 million tonnes (MT) so far in the 2013-14 marketing year. This decline is mainly due to lower arrival of wheat in the mandies with aggressive buying by private traders. Although, wheat marketing year runs from April to March, the entire procurement exercise generally gets over by June. The nodal agency for procurement and distribution of foodgrains - Food Corporation of India (FCI), along with the state agencies had procured 37.35 MT in the year-ago period. The lower procurement than targeted could however be due to the storage problems being faced by the government. As per the latest monthly report release by the United States Department of Agriculture (USDA ), the global wheat consumption at 672.53 million tonnes in April 2013, down 1.17 million tonnes from last month due to lower feed and residual use. Government of India decided to sale 10 mn tons of wheat and 500,000 tons of rice from government inventories in the open market. Moreover, poor demand by flour millers in the local mandies might also persist some selling pressure in in the domestic market. In Delhi wheat prices dropped -5.35 rupee to end at 1572.45 rupees per 10 kg. Technically market is under fresh buying as market has witnessed edged up in open interest by % to settled at while prices up 3 rupee, now Wheat is getting support at 1559 and below same could see a test of 1537 level, And resistance is now likely to be seen at 1599, a move above could see prices testing 1617.

Trading Ideas:

Wheat trading range for the day is 1536-1616.

Wheat gained tracking firm spot prices after dropping due to weak global demand along with fresh supplies in local mandies.

The procurement of wheat has decline by 33% and stood at 25.08 MT so far in the 2013-14 marketing year.

Moreover, poor demand by flour millers in the local mandies might also persist some selling pressure in in the domestic market.

In Delhi wheat prices dropped -5.35 rupee to end at 1572.45 rupees per 10 kg.