Wheat yesterday traded with the positive node and settled 1.27% up at 1200 due to short covering tracking firm spot market demand. Wheat output in India, the world's second-biggest producer, is seen at a record 90.23 million tonnes in 2012. As per the latest updates from Ministry of Consumer Affairs, Food & Public Distribution, centre assures all help to MP in wheat procurement The Centre will provide all assistance to Madhya Pradesh to facilitate increase procurement of wheat. Efforts will be made to provide more gunny bags and speedy movements of food grains from the states. Madhya Pradesh has raised its wheat procurement target to a record of 8 million tonnes (mt) in the current rabi marketing season, up from the earlier 6.5 million tonnes. Such an ambitious procurement target is driven by higher wheat output in the State and the rush by farmers to sell their produce to Government agencies. Madhya Pradesh is offering a bonus of Rs 100 over the minimum support price of Rs 1,285 fixed by the Centre, attracting farmers' interest. Arrivals are over 16 mt. The Food Corporation of India has, so far, procured 1.8 mt, while the State Government's procurement has crossed 6 mt. In Delhi wheat prices dropped -2.65 rupee to end at 1243.35 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1192 after opening at 1193, and finally settled at 1200. For today's session market is looking to take support at 1188.3, a break below could see a test of 1176.7 and where as resistance is now likely to be seen at 1215.3, a move above could see prices testing 1230.7.

Trading Ideas:

Wheat  trading range for the day is 1177-1231.

Wheat ended with gains due to short covering tracking firm spot market demand

Wheat output in India, the world's second-biggest producer, is seen at a record 90.23 million tonnes in 2012

NCDEX accredited warehouses wheat stocks gained by 349 tonnes to 8548 tonnes.

In Delhi wheat prices dropped -2.65 rupee to end at 1243.35 rupees per 10 kg.