Easy availability of stocks coupled with reduced offtake in the market pulled Dara wheat down while flour managed to maintain its previous levels on moderate buying, on Tuesday.
Radhey Shyam, a trade expert, told Business Line that wheat prices have started to soften because the new crop is round the corner.
Market may move range-bound within a negative territory this week and prices may fall further next week, he added.
In the physical market, dara eased by Rs 10 and settled at Rs 1,545-1,550 a quintal.
Around 50 tonnes of dara variety arrived from Uttar Pradesh and the stocks were directly offloaded at the mills. Mill delivery was at Rs 1,545 while delivery at the chakki was Rs 1,550 .
On the National Commodity and Derivatives Exchange, wheat for March contracts decreased by Rs 3 and traded at 1,540 a quintal With an open interest of 4,670 lots.
March contracts were fluctuating between positive and negative territory.
April contracts went up by Rs 3 and traded at Rs 1,425.
Wheat spot prices on the exchange decreased by Rs 5 and traded at Rs 1,515.
Flour Prices
Despite a downtrend in wheat, flour ruled firm on moderate buying and quoted at Rs 1,760-1,770.
Similarly, Chokar remained unchanged and sold at Rs 1,360-1400 a quintal.
EXPORTS
Netherlands's Louis Dreyfus is the highest bidder for the wheat export tender floated by MMTC Ltd last month.
MMTC had floated the tender to sell 1 lakh tonnes of wheat for export. The highest bid was $301 a tonne.