Wheat futures are likely to be sluggish in the coming weeks in view of arrivals gathering pace. Projections of a record wheat crop have also turned the market bearish with signals of higher global output adding further to the trend.
In the spot market on Monday, prices were unchanged. But prices on the National Commodity and Derivatives exchange improved by Rs 2.50 to Rs 1,387.50.
Wheat arrivals dropped to around 20,000 bags at the Karnal grain market terminal on Monday against arrivals of 60,000 till last weekend.
The quality of the stock was medium and government agencies made the procurement.
In the physical market, steady domestic demand kept dara wheat and flour prices unchanged on Monday. Dara wheat quoted at Rs 1,410-1,415 a quintal. Mill delivery was at Rs 1,410 while delivery at the chakki was at Rs 1,415.
At the Lawrence road market in Delhi, a benchmark for the country, wheat mill quality traded at Rs 1,445-1465.
On the National Commodity and Derivatives Exchange, wheat futures traded positive on good buying support.
Wheat for May contracts increased by Rs 7 and traded at Rs 1,476 with an open interest of 10,640 lots. It had touched a high at Rs 1,480 earlier in the day.
June contracts went up by Rs 6 and traded at Rs 1,500.
Flour Prices
With a steady trend in wheat, flour too remained unchanged and quoted at Rs 1,670. Similarly, Chokar ruled flat and sold at Rs 1,250.
Procurement in Punjab
Government agencies and private millers procured more than 4.33 million tonnes till April 28.
Out of total procurement, 4.31 million tonnes were procured by Government agencies at the minimum support price while 21,728 tonnes were purchased by the private millers and traders.
Exports
STC has invited bids for lifting 949,826 tonnes of wheat from its warehouses for exports by private traders.