Wheat yesterday traded with the negative node and settled -2.32% down at 1180 due to fresh arrivals from the producing areas amid poor domestic demand. As per official sources, India's wheat and rice harvest will likely rise to a record 252.56 million metric tonnes, up 3.2% from the record 244.78 million tonnes a year ago and also above its previous estimate of 250.46 million tonnes. Wheat procurement has crossed 5.5 million tonnes in the 2012-13 rabi marketing season as arrivals have picked up in key producing states of Haryana and Punjab. So far, the Government agencies have procured 5.57 mt against 4.68 mt in the corresponding period last year. The increase is about 19 per cent or 8.92 lakh tonne more than corresponding last year. As per latest release from Food and Supplies department of Haryana, the state has procured about 38 lakh tonnes of wheat till 22nd April, out of which over 37.99 lakh tonnes has been procured by six government procuring agencies and remaining 355 tonnes by the traders. The Food and Supplies department mentioned that over 11.02 lakh tonnes of wheat had been purchased by the department and over 11.99 lakh tonnes by HAFED. In Delhi wheat prices dropped -4.95 rupee to end at 1251.95 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1175 after opening at 1206, and finally settled at 1180. For today's session market is looking to take support at 1168, a break below could see a test of 1156 and where as resistance is now likely to be seen at 1199, a move above could see prices testing 1218.

Trading Ideas:

Wheat  trading range for the day is 1156-1218.

Wheat ended lower due to strong production estimates likely in the current year.

Total production of wheat is likely to 90.83 mln tns in current year due to favourable weather condition

The Food and Supplies department mentioned that over 11.02 lakh tonnes of wheat had been purchased by the department

In Delhi wheat prices dropped -4.95 rupee to end at 1251.95 rupees per 10 kg.