The Hindu Business Line : Wheat futures gain as traders square off

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Mumbai Feb. 28 Despite the Union Government's decision to freeze wheat futures, prices on NCDEX gained 2.28 per cent to Rs 977 a quintal on Wednesday. "Traders were squaring up their positions among themselves. Short positions built before the forward contracts are frozen. The gain in prices indicate bullishness in wheat futures," said a dealer.

De-listing of wheat futures also confirms worst fears about crop size. It is likely the outturn may be even lower than the currently estimated 72.5 million tonnes.

Refined soya oil futures were volatile despite the Budget exempting imported oils from 4 per cent special additional duty. Soya oil futures gained 1.19 per cent to Rs 443 per 10 kg. A 15-percentage point duty cut on sunflowerseed oil (both crude and refined) had little immediate impact on the overall mod in the edible oil market.

Jeera futures rose 1.14 per cent to Rs 11,42 per quintal, while mustardseed futures were marked up 1.07 per cent to Rs 383 per 20 kg. Chilli futures were up 0.98 per cent at Rs 4,132 per quintal. "The arrivals at the Guntur spot market have remained low at 40,000-60,000 bags against approximately one lakh bags during the same period last year. Farmers are holding back the produce as they are expecting higher price which were at Rs 6,000 per quintal in January against the current price of Rs 4,500 per quintal," said an investor.

Fears of chana futures facing the axe pushed prices down 1.85 per cent to Rs 2,070 per quintal.

NCDEX registered a turnover of Rs 3,208 crore (Rs 3,614 crore, up to 11 p.m.) up to 5 pm on 91,130 (102,080) trades, while on MCX it was Rs 4,887 crore (Rs 16,658 crore, up to 11 p.m.) on 77,645 (238,933) trades. Active trades were seen in chana, pepper, guarseeds, refined soy oil, jeera and gold.

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