Wheat yesterday traded with the negative node and settled -0.42% down at 1173 due to strong arrivals in major producing states against restricted demand by millers. Wheat stocks at government warehouses on May 1 were 38.2 million tonnes, more than nine times the official target of 4.0 million tonnes for the quarter ending June 30. India is expected to produce a record 90.23 million tonnes of Wheat in 2012. The estimated output is higher than the 86.87 million tonnes produced in the previous year. As per latest release from Food Corporation of India (FCI), domestic wheat procurement has already surpassed the target of 31.8 million tonnes is being set by government to reach
32.6 million tonnes. The major wheat producing states such as Punjab and Haryana reported the strong procurement of around 12.8 and 8.6 million tonnes of wheat. Moreover, the latest update for Ministry of Agriculture stated the total production of wheat is likely to 90.83 million tonnes in the current year due to favourable weather condition in the current year. In Delhi wheat prices dropped -2.5 rupee to end at 1230.5 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1171 after opening at 1175, and finally settled at 1173. For today's session market is looking to take support at 1169.7, a break below could see a test of 1166.3 and where as resistance is now likely to be seen at 1177.7, a move above could see prices testing 1182.3.

Trading Ideas:

Wheat trading range for the day is 1166-1182.

Wheat ended weak due to strong arrivals in major producing states against restricted demand by millers.

India is expected to produce a record 90.23 million tonnes of Wheat in 2012.

Major wheat producing states such as Punjab and Haryana reported strong procurement of around 12.8 and 8.6 mln tns

In Delhi wheat prices dropped -2.5 rupee to end at 1230.5 rupees per 10 kg.