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Wheat down on record output, rising procurement

Slackened demand from flour mills also pressurised prices

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 3:44 AM IST

Wheat futures fell by Rs 7, or 0.58%, to Rs 1,190 per quintal as speculators reduced their positions, driven by record production this year and rising procurement of grain by the government agencies.

Also, slackened demand from flour mills also put pressure on the wheat futures prices.

At the National Commodity and Derivatives Exchange, wheat for delivery in July traded Rs 7, or 0.58%, lower, at
Rs 1,190 per quintal, with an open interest of 12,560 lots.

The June contract shed Rs 5, or 0.42%, to Rs 1,173 per quintal, with an open interest of 20,610 lots.

Analysts said the fall in wheat prices at futures trade was due to off-loading of positions by speculators, driven by a record output this year and rising procurement of grain by the government agencies.

Meanwhile, wheat procurement in the country also grew to a record 32.6 million tonnes (mt) this year so far, surpassing the government's target of 31.8 mt and is expected to grow further as states like Madhya Pradesh and Uttar Pradesh still seeing daily crop arrival of up to 150,000 tonnes.

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First Published: May 28 2012 | 1:45 PM IST

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