Wheat yesterday traded with the negative node and settled -2.27% down at 1420 amid higher supplies in the spot market. Indian state trading company PEC has issued international tenders to sell and export a total 225,000 tonnes of Indian milling wheat. India's wheat stocks at government warehouses on Aug. 1 were 47.5 million tonnes, more than three times the official target of 17.1 million tonnes for the quarter ending September.  The International Grains Council (IGC) has further trimmed its global wheat production forecast for 2012-13 to 657 million tonnes (mt) due to decline in output in Russia, Australia and Europe. Last month, the London-based organisation had forecast the output at 662 mt for 2012-13, lower than the record output of 696 mt last year. The global wheat consumption is expected to decline to 679 mt this year from 691 mt in 2011-12 as high prices are expected to reduce feed demand, it said. According to IGC, the carry over stock is estimated to be lower at 175 mt as compared to 197 mt in the review period because major exporters are becoming increasingly tight. In Delhi wheat prices gained 1.35 rupee to end at 1457.2 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1412 after opening at 1453, and finally settled at 1420. For today's session market is looking to take support at 1403.7, a break below could see a test of 1387.3 and where as resistance is now likely to be seen at 1444.7, a move above could see prices testing 1469.3.

Trading Ideas:

Wheat  trading range for the day is 1387-1469.

Wheat ended lower amid higher supplies in the spot market.

PEC has issued international tenders to sell and export a total 225,000 tonnes of Indian milling wheat.

IGC has further trimmed its global wheat production forecast for 2012-13 to 657 million tonnes

In Delhi wheat prices gained 1.35 rupee to end at 1457.2 rupees per 10 kg.