Commodities

Wheat fall as traders await new crop

Our Correspondent Karnal | Updated on March 03, 2011

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Dara wheat prices dropped by Rs 5-10 and ruled at Rs 1,225-1,230 a quintal against levels of Rs 1,240 quoted at the beginning of this week. For the finer quality, it was around Rs 1,240 a quintal on Thursday.

Wheat prices havedropped by Rs 20-25 a quintal this week and this fall may continue, said Mr Sewa Ram, a wheat trader.

Just about 120 quintals of desi wheat arrived and were quoted at Rs 2,400 a quintal. Traders are not booking big orders as bulk buyers are out of the market at present, said Mr Ram. Prices of desi wheat is on higher side and traders are waiting for the new crop to come to the market as the prices will soften then, he added.

Around 1,000 quintals of dara variety were procured from the Food Corporation on India by flour millers on Thursday.

Flour Prices

Flour prices continued to witness the downtrend and dropped by Rs 15 at Rs 1,235 for a 90 kg bag. On the other hand, chokar prices maintain their previous levels at Rs 530 for a 49 kg bag.

What to expect?

According to reports, wheat prices are projected to be bearish in the short to medium term. The quality of the arrivals is also expected to be good as the showers at the till stages yield good output. The increase in the production by 1.5 million tonnes might also exert pressure on the prices till April and May or till the procurement from the FCI comes to an end. The millers in the spot markets would wait for prices to fall close to the minimum support price level to buy in bulk. Millers might show preference towards buying wheat in the open market sale scheme of the FCI according to their requirement.

Published on March 03, 2011

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