Steady to Firm Wheat Prices Sustained by Active Stockist Sentiments and Govt Procurement

New Delhi, April 25 (Commodities Control): Wheat prices maintained their steady to firm trend across major centers today, driven by active stockist sentiments and ongoing government procurement activities.

In Kolkata, prices witnessed an uptick of INR 10 per quintal, reaching INR 2615 per quintal. However, wheat arrivals in major Uttar Pradesh mandis fell short of expectations, with only around 50,000-70,000 bags observed against an anticipated 1 lakh bags.

Significant stockpiling activities by major players in the Bihar region have contributed to competitive prices for wheat supplies. Additionally, this year's wheat crop has lower moisture content, around 9%, due to high temperatures, prompting increased activity among stockists to secure wheat stocks.

Wheat prices in Bihar traded with a steady to positive bias at INR 2450-2470 per quintal, underpinned by active stockist sentiments.

Stockist sentiments have also been buoyed by the slowing pace of government procurement. Wheat procurement to date stands at 11.5 million tons, compared to 18.4 million tons during the same period last year. Higher moisture content in wheat in Punjab and Haryana, resulting from recent rain spells, has delayed harvesting.

In Delhi, prices experienced a slight decline of INR 10 per quintal, settling at INR 2460 per quintal. Conversely, new wheat in Rajasthan saw an increase of INR 10 per quintal, reaching INR 2570 per quintal, driven by robust demand. Similarly, new wheat in Gujarat rose by INR 10 per quintal to INR 2570 per quintal.

In Uttar Pradesh, prices rose by INR 10 per quintal to INR 2430 per quintal due to low arrivals. Meanwhile, Madhya Pradesh wheat remained steady at INR 2550 per quintal ex-mill.

In South India, new wheat in Madhya Pradesh saw an increase of INR 20 per quintal to INR 2830 per quintal in Hyderabad, while spot Bangalore witnessed a similar uptick to INR 2880 per quintal. Rake movement is anticipated to accelerate in the coming days.

Buyer activity is notable in the Pune market, while some farmers are withholding supplies. Lower yields reported by farmers, coupled with the prevailing market conditions, indicate a likelihood of steady to firm wheat prices in the near term.

Overall, wheat prices are expected to maintain their current trend of steadiness to firmness in the near term. However, market participants will closely monitor government procurement activities and related policies, as any significant alterations could impact prices in the longer run.