Wheat yesterday traded with the positive node and settled 0.32% up at 1551 in the wake of strong import demand from Malaysia along with possibility of weak production status in major wheat producing states. Prices are likely to gather some more buying in the near term. As per latest release from Food Ministry, Malaysian government has shown strong interest in Indian wheat. This trade can be initiated by long-term contract with India for supply of Indian wheat through diplomatic channel. For this, Malaysian government is also planning to send official intimation to Indian government. Ministry also stated that Over 1.5 million tonne wheat via private trade has already been exported from the country since September 2011. Moreover, possibility of weak wheat production estimates in some of the major producing states such as Punjab and Haryana might also incite the strong stockiest interest in local mandies. The Agriculture department has set the 2013 wheat production target at 86 million tonnes against the record harvest of 93.9 million tonnes this year. Government is trying to promote the cultivators to shift area under wheat towards less irrigation- crops, like pulses, corn and other coarse grains. In Delhi wheat prices dropped -1.7 rupee to end at 1578.85 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1545 after opening at 1545, and finally settled at 1551. For today's session market is looking to take support at 1544.7, a break below could see a test of 1538.3 and where as resistance is now likely to be seen at 1557.7, a move above could see prices testing 1564.3.

Trading Ideas:

Wheat  trading range for the day is 1538-1564.

Wheat gained in the wake of strong import demand from Malaysia along with possibility of weak production status

Ministry also stated that Over 1.5 mln tn wheat via private trade has already been exported from country since September 2011.

Agriculture department has set 2013 wheat production target at 86 mln tns against the record harvest of 93.9 mln tns

In Delhi wheat prices dropped -1.7 rupee to end at 1578.85 rupees per 10 kg.