Wheat yesterday traded with the negative node and settled -0.18% down at 1104.8 as surplus availability due to a record harvest in 2010/11 season weighed on prices. India had recently allowed export of 2 million tonnes of wheat, after a gap of four years. However, the step failed to arrest the downtrend in prices in the domestic market. India's wheat output for 2010/11 season is estimated to hit a record high of 84.27 million tonnes. Wheat stocks in the government warehouses were 33.6 million tonnes, more than double the target of 17.1 million tonnes. Rice inventory stood at 22.7 million tonnes against a target of 9.8 million tonnes. Wheat arrivals in India begin in March and peak by mid-April, but were delayed this year as untimely rains in March pushed back harvesting. India expects a record wheat harvest of 86 million tonnes in 2012, the farm secretary said on Monday, raising hopes of exports for a second straight year from the world's second-biggest producer and consumer of the grain after China. In Delhi wheat prices gained 10.85 rupee to end at 1154.6 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1103.6 after opening at 1109.6, and finally settled at 1104.8. For today's session market is looking to take support at 1102.4, a break below could see a test of 1100 and where as resistance is now likely to be seen at 1108.4, a move above could see prices testing 1112.

Trading Ideas:

Wheat trading range is 1100-1112.

Wheat ended weak as surplus availability due to a record harvest in 2010/11 season weighed on prices

Wheat stocks in the government warehouses were 33.6 million tonnes, more than double the target of 17.1 million tonnes

India's wheat output for 2010/11 season is estimated to hit a record high of 84.27 million tonnes.

In Delhi wheat prices gained10.85 rupee to end at 1154.6 rupees per 10 kg.