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Wheat futures up on short covering, spot demand

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 1:24 AM IST

Wheat futures prices traded Rs 4, or 0.32 per cent higher, to Rs 1,240.20 per 100 kg, as speculators  covered up short positions amid government's decision to hike minimum support price (MSP) for the grain.  

Pick up in demand at the physical market, driven by festive and marriage season, also supported the upside. 

At the National Commodity and Derivatives Exchange counter, wheat for delivery in October moved up by Rs 4, or 0.32 per cent, to Rs 1,240.20 per 100 kg, with an open interest of 2,990 lots.

Similarly, wheat for delivery in November also edged up by Rs 1.80, or 0.14 per cent, to Rs 1,267.60 per 100 kg, with an open interest of 22,450 lots, while delivery in December contract gained Re 1, or 0.08 per cent, to Rs 1,291 per 100 kgs, with an open interest of 14,820 lots.

Analysts said the rise in wheat futures was attributed to covering up of pending short positions by speculators and pick up in demand at spot markets. 

They said a hike in MSP of wheat by Rs 20 per quintal to Rs 1,120 per quintal for the rabi crops in 2010-11, also influenced its futures prices.

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First Published: Oct 20 2010 | 4:31 PM IST

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