Low stocks and domestic demand pushed up dara wheat and flour on Tuesday.

Wheat prices may continue to rule firm until the Food Corporation of India releases stocks, said commodity expert Radhey Sham. Small flour mills are finding the going tough because of the shortage, he added.

Continuing the uptrend seen over the weekend, dara wheat prices rose by Rs 20 to Rs 1,540-1,550 a quintal, while flour traded at Rs 1,730 a quintal, Rs 30 up.

In the physical market, around 50 tonnes of dara variety arrived from Uttar Pradesh, which were directly offloaded at the mills. Mill delivery was at Rs 1,540-1,545 a quintal, while delivery at the chakki was Rs 1,550 a quintal.

On the other hand, desi wheat varieties ruled unchanged despite slack trading and at Rs 2,050-2,200 a quintal.

On the National Commodity and Derivatives Exchange, wheat for November delivery increased by Rs 17 and traded at Rs 1,592 a quintal after touching a high at Rs 1,600 a quintal earlier in the day. December contracts was up Re 1 to Rs 1,583 a quintal. Spot wheat on the exchange traded at Rs 1,550 a quintal.

Flour Prices

An increase in demand pushed flour prices further up by Rs 30 at Rs 1,730 a quintal. Flour prices may increase further later this week, said market sources. Chokar improved by Rs 15 and sold at Rs 1,300 for a quintal.

Wheat exports

MMTC Ltd has issued a global tender to export 50,000 tonnes of wheat between December 10 and 31.

(This article was published on November 6, 2012)
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