Wheat spot and futures remained supportive on account of low arrivals and buying interest on Tuesday.

According to market experts, wheat futures are likely to touch a new contract high this week, following a rise in demand and high global prices.

India can now take good advantage by selling in the global markets as prices have increased globally, said market experts. Earlier, the Government had decided not to export in a hurry and opted for a wait-and-watch policy .

On the National Commodity and Derivatives Exchange, wheat for July delivery shot up by Rs 32, touching a high at Rs 1,268 a quintal. Spot prices on the MCX increased by Rs 0.90 at Rs 1,240.5/ quintal.

In the physical market Dara remained unchanged and was quoted at Rs 1,200-1,210/ quintal. Arrivals remained low as farmers are busy sowing paddy. Only 30 tonnes of dara variety arrived from Uttar Pradesh and the stocks were directly offloaded at the mills. Mill delivery was at Rs 1,200-1,205/ quintal, while delivery at the chakki was at Rs 1,210/ quintal.

Mr Satish Kumar, a wheat trader, told Business Line that steady domestic demand, coupled with low arrivals, kept wheat prices firm. Dara prices have been ruling unchanged since July 3 and may continue to rule around the current levels this week too, he said.

Similarly, desi wheat varieties continued to rule at the previous levels. Tohfa ruled at Rs 2,230/ quintal and Bhojan King was quoted at Rs 2,110, while the Nokia variety traded at 2,060/ quintal.

Flour Prices

With a steady trend in wheat, flour was ruling at the same prices of at Rs 1,190 for a 90 kg bag. Chokar prices remained unchanged and was sold at Rs 610-620 for a 49 kg bag.

Related Topics