Wheat yesterday traded with the positive node and settled 0.78% up at 1552 due to weak arrivals of wheat in local mandies along with strong demand of private millers at higher levels. As per the latest release from the Food Corporation of India (FCI) , the agency has procured around 24 million tonnes of wheat from all the producing states, down almost 17 % from the corresponding period last year the. This is mainly due to receding supplies in major producing areas. The total daily arrivals of wheat in major states such as Haryana and Punjab have reduced to 8000-10000 bags. The sources also suggested that the overall wheat supplies for current years is expected to be around 80-85 million tonnes against 93-94 million tonnes that was expected by the government. The strong decline is mainly on the heels of restricted supplies of wheat by farmers at major mandies. The majority of the farmers are expecting strong surge in wheat demand in the lean arrival period. India's wheat procurement for 2013-14 marketing year (which is started on April 1) may decline to 26-28 mn tons, a fall of 10-12 mn tons when compared to the last year. However, the figures are less than expected sum of 44 mn tons. In Delhi wheat prices gained1.25 rupee to end at 1525 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1538 after opening at 1538, and finally settled at 1552. For today's session market is looking to take support at 1539, a break below could see a test of 1526 and where as resistance is now likely to be seen at 1564, a move above could see prices testing 1576.

Trading Ideas:

Wheat  trading range for the day is 1526-1576.

Wheat gained due to weak arrivals of wheat in local mandies along with strong demand of private millers at higher levels.

The sources also suggested that the overall wheat supplies for current years is expected to be around 80-85 million tonnes

The strong decline is mainly on the heels of restricted supplies of wheat by farmers at major mandies.

In Delhi wheat prices gained 1.25 rupee to end at 1525 rupees per 10 kg.