Wheat futures witnessed some correction on profit booking on Tuesday, while spot market remained supportive following low arrivals.

A correction in wheat futures was anticipated as prices have risen sharply, since the beginning of July, said market experts. Traders have started booking profit following the apprehension that government may release stocks to pull prices down, said experts. According to the market sources, wheat futures may fall further this week.

On the National Commodity and Derivatives Exchange, wheat for August delivery decreased by Rs 15, to Rs 1,388 a quintal. It had touched a low of Rs 1,378 earlier on Tuesday. September contracts went down by Rs 19 to Rs 1,435 . Spot prices on the MCX increased marginally by Rs 0.3 to Rs 1,395.1 .

In the physical market, after witnessing a good rally last weekend, dara and flour prices remained almost unchanged. The Dara variety was quoted at Rs 1,220-1,230 .

Only 35 tonnes of dara variety arrived from Uttar Pradesh and the stocks were directly offloaded at the mills. Mill delivery was at Rs 1,220-1,225 a quintal while delivery at the chakki was at Rs 1,230 .

Following good domestic demand for flour, interest in dara wheat remained firm, said Mr Ram Kumar, a wheat trader. Prices have been ruling firm since last weekend, he added. Low arrivals are also supporting the market at current levels.

On the other hand, desi wheat varieties continued to rule flat. Tohfa sold at Rs 2,210 a quintal, Bhojan King at Rs 2,100, while the Nokia variety was at Rs 2,020.

Flour Prices

With a steady trend in wheat, flour too ruled flat and quoted at Rs 1,215-1,220 for a 90-kg bag. Similarly, Chokar remained unchanged and sold at Rs 620-635 for a 49-kg bag.

Related Topics
comment COMMENT NOW