Commodities

Limited supply could lift wheat

Our Correspondent Karnal | Updated on May 28, 2013 Published on May 28, 2013

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Low availability may push wheat prices further up in the physical market while futures market may remain bearish following profit booking, said trade experts.

Around 1,000 bags of wheat arrived at the Karnal Grain Market Terminal on Tuesday and procurement was done by the private traders.

In the physical market, Dara wheat witnessed a good rally and went up by Rs 50 to Rs 1,465-1,470 a quintal.

Mill delivery was at Rs 1,465 while delivery at the chakki was at Rs 1,470. Desi wheat variety sold at Rs 2,300.

Low availability of stocks coupled with good domestic demand mainly pushed wheat prices upwards, said Radhey Sham, a wheat trader.

Arrivals have been low in the market this year and now it has dropped to just 1,000 bags. Traders expect wheat prices to rise further in coming days, he added.

In Delhi’s Lawrence road market, a benchmark for the country, wheat mill quality traded at Rs 1,550-1,590 a quintal.

On the NCDEX, futures traded down on lack of buying interest. Wheat for June contracts decreased by Rs 11 and traded at 1,582 with an open interest of 20,740 lots.

July contracts went down by Rs 12 and traded at Rs 1,608.

According to the market experts, wheat futures witnessed some correction on profit booking and a weak trend is likely to be witnessed in the coming days.

While, wheat spot prices on the exchange traded at Rs 1,500.

Flour Prices

Following an uptrend in wheat, flour too went up by Rs 30 and quoted at Rs 1,700.

On the other hand, Chokar ruled flat and sold at Rs 1,250-1,275 a quintal.

Published on May 28, 2013
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