Wheat prices bullish on global cues

NEW DELHI: India wheat prices remain firm in the global market with reports of crop loss doing the rounds in the domestic market. Prices have firmed up to $280 atonne for March delivery from a low of $265 a tonne in January. Business conglomerates like ITC, Cargill, Louis Dreyfus, Glencore and Emmsons have entered or actively looking at the Gujarat market from where the exports are taking place.

Traders and companies forecast prices to remain firm till late April and then gradually slip as wheat arrivals pick up across the markets in Madhya Pradesh, Uttar Pradesh, Rajasthan and Punjab. “Prices of new crop from Gujarat have firmed by $10 a tonne. Current purchase for March shipments is being quoted at $276-280 freight on board (fob) a tonne,” said Rajnikant Rai, COO (agribusiness division), ITC, which is currently catering to the Middle East market.

Rai added that with a higher acreage and good quality produce in Gujarat, traders’ only option was to buy from the state. Late rains and hail have impacted wheat crop across western Uttar Pradesh, southern Rajasthan and Madhya Pradesh, resulting in delayed harvest, say traders.