Wheat futures traded Rs 9.60, or 0.74 per cent higher at Rs 1,310 per 100 kg on firm market demand and speculators building up positions on reports that the government was considering imposition of import duty on grain.
However, the government decision to release five million tonnes of grain in the open market along with mounting stocks in spot markets, capped gains.
At the National Commodity and Derivatives Exchange counter, wheat for delivery in far-month November contract moved up by Rs 9.60 or 0.74 per cent to Rs 1,310 per 100 kg, with an open interest of 2,840 lots.
The grain for delivery in August contract also traded Rs 6.40 or 0.51 per cent higher, at Rs 1,259.20 per 100 kg, with an open interest of 24,840 lots. It ended 0.29 per cent higher at Rs 1,252.80 per 100 kg in yesterday's trading.
Analysts said the rise in wheat prices in futures market was mostly due to increase offtake by flour mills at the physical markets and reports of the government considering imposition of import duty on grain.
They, however said, that government's decision to release five million tonnes of grain for open market sales, restricted gains.
