Wheat yesterday traded with the negative node and settled -0.49% down at 1216 as bearish trend continues due to strong arrivals in major producing states. As per latest release from official sources, government agencies have procured almost 32.95 lakh tonnes of wheat as on 16th April 2012 against 28 lakh tonnes that were reported last year in the same period. Arrivals from northern states such as Haryana, Punjab and Uttar Pradesh, have been delayed because of recent rains, while those in western Gujarat and central Madhya Pradesh states are likely to touch peak levels this week. India's wheat harvesting could touch a record 90 million tonnes in 2012, a record output for the second straight year, on favourable weather conditions. India's April 1 wheat stocks at government warehouses were 19.9 million tonnes, nearly five times the official target of 4.0 million tonnes for the quarter ending June 30, government sources said last week. The government plans to buy 31.9 million tonnes of wheat in the marketing year from April 1, 12.7 percent higher than the 28.3 million tonnes bought from farmers in 2011/12. In Delhi wheat prices dropped -18.15 rupee to end at 1260.2 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1212 after opening at 1222, and finally settled at 1216. For today's session market is looking to take support at 1207.3, a break below could see a test of 1198.7 and where as resistance is now likely to be seen at 1229.3, a move above could see prices testing 1242.7.

Trading Ideas:

Wheat  trading range for the day is 1199-1243.

Wheat ended weak as bearish trend continues due to strong arrivals in major producing states

Government agencies have procured almost 32.95 lakh tonnes of wheat as on 16th April 2012 against 28 lakh tonnes

NCDEX accredited warehouses wheat stocks gained by 600 tonnes to 5202 tonnes.

In Delhi wheat prices dropped -18.15 rupee to end at 1260.2 rupees per 10 kg.