Sluggish domestic demand amid higher stocks on Tuesday pulled down dara wheat and flour marginally. Desi wheat ruled unchanged even as sales were tepid.
In the physical market, dara eased by Rs 10 and quoted at Rs 1,520-1,530 a quintal. Around 700 quintals of dara variety arrived from Uttar Pradesh and were directly offloaded at the mills. Mill delivery was at Rs 1,520-1,525, while delivery at the chakki was Rs 1,530.
Though demand is low, wheat will remain flat and a large drop in prices is unlikely, said trader Sewa Ram.
Desi wheat varieties continued to rule flat on low stocks and quoted at Rs 2,500-2,550. Because of poor demand, traders are not buying desi wheat despite depleting stocks, said Sewa Ram.
Futures remained bearish. On the National Commodity and Derivatives Exchange, wheat for December delivery decreased by Rs 5 and traded at Rs 1,616 a quintal; it touched a high of Rs 1,620 earlier in the day. The January contract was up Rs 2 to Rs 1,592. Market experts said futures were moving in a narrow range and may decline further. Spot wheat on the exchange was Rs 1,540 a quintal.
Following a downtrend in wheat, flour prices, too, eased by Rs 10 and quoted at Rs 1,740 a quintal. Chokar ruled flat and fetched Rs 1,550 a quintal.
State trading company PEC Ltd has floated a tender to export 1 lakh tonnes of milling wheat between January 10 and February 15.