Wheat futures down on record output, rising procurement

NEW DELHI: Wheat futures fell by Rs 7, or 0.58 per cent, to Rs 1,190 per quintal as speculators reduced their positions, driven by record production this year and rising procurement of grain by the government agencies.

Also, slackened demand from flour mills also put pressure on the wheat futures prices.

At the National Commodity and Derivatives Exchange, wheat for delivery in July traded Rs 7, or 0.58 per cent, lower, at Rs 1,190 per quintal, with an open interest of 12,560 lots.

Similarly, wheat for delivery in June shed Rs 5, or 0.42 per cent, to Rs 1,173 per quintal, with an open interest of 20,610 lots.

Analysts said the fall in wheat prices at futures trade was due to off-loading of positions by speculators, driven by a record output this year and rising procurement of grain by the government agencies.

Meanwhile, wheat procurement in the country has grown to a record 32.6 million tonnes (mt) this year so far, surpassing the government's target of 31.8 mt and is expected to grow further as states like Madhya Pradesh and Uttar Pradesh still seeing daily crop arrival of up to 150,000 tonnes.