Wheat yesterday traded with the positive node and settled 1.3% up at 1479 on short covering amid firm spot demand after prices dropped on higher supplies and an expected rise in output as favourable weather boosted prospects of a bumper crop. The cold wave seems to be aiding sowing of wheat that has been planted on 291.27 lh, marginally down from corresponding last year's 292.90 lh. In Madhya Pradesh, the wheat acreage has touched 50 lh, while in Uttar Pradesh it is inching closer to 100 lh. In Punjab and Haryana, the acreage has remained constant at 35 lh and 25 lh, respectively. Bumper wheat crop in India is expected to keep both wheat prices and futures in negative territory. As of 2nd January 2013, India has a wheat stock of 34 mn tons against the requirement of 10 mn tons. Wheat has been sown in an area of 291.27 lakh ha for rabi crop against last year's 292.90 lakh ha; according to the latest official data released by Govt. of India. India is expected to raise its wheat exports on record 6 mn tons bumper crop to block short fall of wheat in the international market. In Delhi wheat prices gained 5 rupee to end at 1575 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1459 after opening at 1460, and finally settled at 1479. For today's session market is looking to take support at 1455.7, a break below could see a test of 1432.3 and where as resistance is now likely to be seen at 1505.7, a move above could see prices testing 1532.3.

Trading Ideas:

Wheat trading range for the day is 1432-1532.

Wheat ended with good gains on short covering amid firm spot demand after prices dropped on higher supplies

The cold wave seems to be aiding sowing that has been planted on 291.27 lh, marginally down from last year's 292.90 lh.

In Madhya Pradesh, the wheat acreage has touched 50 lh, while in Uttar Pradesh it is inching closer to 100 lh.

In Delhi wheat prices gained 5 rupee to end at 1575 rupees per 10 kg.