Wheat to stay rangebound

COMMODITY SPIKES

Domestic wheat prices are expected to remain rangebound despite the 2.2 million tonne (MT) rise in global output estimates for January on bumper harvest in Russia and EU-25, according to the US data released on Friday.

The prices backwardation may continue till the new good quality crop arrives at the market in about 45-days.The commodity did not change much in the spot market in the last 13 days and closed at Rs 1099 per quintal on Saturday compared with Rs 1100 per quintal on January 1.

Because of the Rs 56 rise in prices to Rs 1060 for near month contract on the Ncdex, the turnover and open interest on the India's leading agri commodity derivatives platform slumped to Rs 1078.34 lakhs and 26830 contracts on January 12 from Rs 1617.61 lakhs and 32470 contracts on January 1 respectively.

According to the US data, production estimates were raised 1.4 MT in Russia and 0.7 MT in EU-25. Global consumption was raised 1.2 MT this month reflecting the increase in demand from EU-25, Russia, Ukraine, and India.