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Wheat futures traded higher on Thursday with the near-month December contract topping Rs 1,600 a quintal on account of the Government's move to step up exports from its over-flowing reserves.
A potent combination of dry weather in the US and drought in the Black Sea region seem to be working in favour of Indian wheat. The recent spike in global wheat prices has encouraged the Government to open up exports and it has resumed talks with potential buyers such as Iran.
On the NCDEX, the January and February series gained 0.5 per cent each at Rs 1,591 and Rs 1,580 respectively. In the spot market in Delhi, the benchmark prices ruled unchanged at Rs 1,580.
Global scenario: US wheat futures rallied after the US Department of Agriculture gave a record-low rating to the country's wheat crops that were hit by drought dampening the export demand.
Poor prospects for supply from other export powerhouses such as Russia and Ukraine are also seen as catalysts. The wheat crop in both Russia and Ukraine has suffered severe damage this summer and Russia may have to import. This will fuel demand for Indian wheat.
On the CBoT, December wheat dropped 0.2 per cent to $8.74-1/4 a bushel by 0436 GMT.
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