Wheat futures dropped marginally on Tuesday on rumours that the Government would ban exports by private traders. The Forward Market Commission’s move to double the initial money that has to be paid as margin for buying contracts has also aided the downtrend.

Wheat has gained over the past one-and-a-half months on news that the US is going through its worst drought in over 50 years. Ever since the news of the US drought broke, there has been a shortage of wheat in the open market.

In India, a private trader had reportedly bought huge quantities and moved it to port destinations.

Besides, higher procurement by the Government to build up buffer stocks has also starved the open market. This is despite a record production of over 93mt this year.

Millers have been complaining that they have been unable to buy stocks despite offering higher prices.

August futures were down Rs 5 at Rs 1,385 a quintal, while September futures declined by Rs 8 at Rs 1,420. October futures slipped by Rs 9 at Rs 1,452, while November slipped by Rs 12 at Rs 1,488 a quintal. December was quoted lower by Rs 15 at Rs 1,517 a quintal.

Spot wheat at Karnal was quoted at Rs 1,355 a quintal.

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