New Delhi, February 19 (Commoditiescontrol): Wheat markets maintained a stable to weak trend in key markets as the new crop arrivals continue to exert downward pressure on prices.
In Indore mandi, 2,500 bags of new wheat arrived today, with prices quoted at Rs 2400-2450 per quintal (for mill quality dry) and Rs 2000-2300 (for mill quality moisture). Lokwan new wheat was traded at Rs 2500-2900 per quintal.
Gondal mandi witnessed the arrival of 5,000-6,000 bags, and lokwan prices ranged from Rs 2500 to 3000 per quintal.
The wheat crop in Madhya Pradesh is flourishing, thanks to favorable weather conditions. A considerable percentage of farmers have shifted from chana to wheat this year.
In Delhi, prices dipped by 75 per quintal to Rs 2400 per quintal due to reduced demand for maida and optimistic crop expectations. Bihar's wheat prices also declined by 30 per quintal, settling at Rs 2500 per quintal. Kolkata reported steady wheat prices at Rs 2680-2700 per quintal.
The UP market experienced a decrease of Rs 30 per quintal, reaching 2450 per quintal. Southern millers' subdued demand impacted the market. The UP-Bengaluru line traded steadily at Rs 2930 per quintal. Rajasthan witnessed a decrease of Rs 25 per quintal, settling at Rs 2450 per quintal. Hyderabad mill delivery traded at Rs 2850 per quintal, while Coimbatore reported prices at Rs 2900 per quintal, with supplies coming from UP and MP for southern states.
Black Sea wheat maintained stability at CNF 275 per ton due to low export demand. If India decides to open up imports this year, there is a healthy parity of USD 30-40 per ton.
Considering the Minimum Support Price (MSP) of new wheat at Rs 2275 per quintal, potential procurement by the government at that rate may lead mandi prices to decline within the range of Rs 2250-2275 from the current Rs 2400-2425 range. However, if the government offers a bonus for procurement, the impact on prices may be less pronounced.
The revised wheat stock limit, applicable until March 31, 2024, suggests that major stockpiling by bulk stockists is unlikely to occur before the deadline, contributing to the anticipation of weak wheat prices in the near term.
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