Wheat futures were bearish on Tuesday on weak global cues with prices dropping on hopes of better-than-anticipated yields.

The September contract slid by Rs 6 to Rs 1,608 a quintal while the October and November series dropped by Rs 5 and Rs 2 to close at Rs 1,549 and Rs 1,554 respectively.

Wheat prices have been on the decline since reports from the US and Black Sea region say the situation may not be as bad as was feared earlier. This, in particular, has cooled demand for exports.

In the domestic market, prices have been on a downswing after the Centre said some 10 lakh tonnes would be sold through the open market sale scheme.

Rains in August and this month have boosted prospects of a better wheat crop for which sowing will begin in October-end or early November.

In the spot market at Delhi, wheat was quoting at Rs 1,569.6 a quintal.

Global scenario: The key December wheat contract on CBOT fell over 5 per cent on long liquidation and prospects for better yields after rains in the dry, wheat-growing areas of Australia, the world's No. 2 exporter. European wheat futures too eased in line with US prices.

(This article was published on September 18, 2012)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.