Wheat likely to rule firm on low inventories

Dara wheat prices are likely to rule firm around current levels in the coming days. Low availability of stocks coupled with good domestic demand pushed dara wheat further up on Tuesday.

Around 1,000 bags of wheat arrived at the Karnal Grain Market Terminal on Tuesday for procurement by private traders.

In the physical market, dara wheat went further up by Rs 10 and sold at Rs 1,485-1,490 a quintal. Mill deliveries were at Rs 1,475 a quintal, while delivery at chakkis was at Rs 1,480 a quintal. Desi wheat variety sold at Rs 2,300 a quintal.

Radhey Sham, a trade expert, told

Business Line that fresh buying by flour mills helped dara prices climb up. Wheat and flour prices are likely to rule around current levels without much fluctuation this week, he said, as domestic demand props up the market.

On the National Commodity and Derivatives Exchange, wheat for June contracts decreased by Rs 7 and traded at 1,594 a quintal with an open interest of 15,310 lots. The grain had hit a low at Rs 1,590 a quintal earlier in the day.

July contracts went down by Rs 2 yo Rs 1,620 a quintal, while wheat spot prices on the exchange traded at Rs 1,450 a quintal.

Flour Prices

Despite an uptrend in wheat, flour continued to rule flat and quoted at Rs 1,700 a quintal. Similarly, Chokar ruled flat and sold at Rs 1,250-1,275 a quintal.