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Wheat down on record procurement

Supply pressure in markets put pressure on wheat futures

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Press Trust of India New Delhi
Last Updated : Jan 24 2013 | 1:49 AM IST

Wheat futures prices today declined by Rs 10 to Rs 1,150 per quintal as speculators indulged in reducing positions, driven by record procurement of grain this year.

Supply pressure in the spot markets also put pressure on the wheat futures here.

At National Commodity and Derivatives Exchange, wheat for delivery in June traded Rs 10, or 0.86%, lower at Rs 1,150 per quintal, with an open interest of 2,430 lots.

The July contract shed Rs 2, or 0.17%, to Rs 1,167 per quintal, with an open interest of 17,870 lots.

Analysts attributed fall in wheat prices at futures trade to off-loading of positions by speculators after procurement of grain reached a record 36.55 million tonne this year so far on the back of record production.

Meanwhile, total wheat purchase in this marketing season (April-June) has already surpassed the government's target of 31.8 million tonne.

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First Published: Jun 18 2012 | 3:30 PM IST

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