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Wheat Prices Mixed Amid Millers' Selective Buying, Market Awaits FCI Auction Update

24 Jan 2025 6:30 pm
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Mumbai, 24 Jan (Commoditiescontrol): Wheat prices displayed a mixed trend across major trading centers today as millers continued selective procurement to meet immediate crushing needs. Prices rose in some regions by ₹20-50 per quintal, driven by fresh demand, while other markets witnessed a decline of similar margins once demand subsided.

In Delhi, wheat prices dropped ₹40 per quintal, trading at ₹3,260 per quintal. Uttar Pradesh recorded a ₹10 increase to ₹3,120 per quintal. Prices in Madhya Pradesh and Gujarat remained stable at ₹3,150 per quintal, while Rajasthan saw a ₹10 rise to ₹3,160 per quintal. Bihar and Kolkata prices held steady at ₹3,100 and ₹3,210 per quintal, respectively. Bengaluru posted the sharpest gain, with prices climbing ₹50 to ₹3,500 per quintal.

The absence of a consistent trend reflects millers’ short-term buying patterns, causing price fluctuations once their immediate needs are met.

Wheat Sowing Update: Acreage Increases

As per government data, wheat sowing for the 2024-25 Rabi season reached 320 lakh hectares as of January 17, a 1.5% increase from 315 lakh hectares during the same period last year. The rise is attributed to improved acreage in Rajasthan and Madhya Pradesh due to reduced mustard sowing. Sowing in states like Uttar Pradesh, Punjab, Bihar, and Haryana remains on par with last year’s levels. With sowing nearing completion, crop conditions are reported to be favorable across key regions.

OMSS Auctions and Government Strategy

Under the Open Market Sale Scheme (OMSS), 0.87 million tons of wheat have been sold to bulk buyers over the last eight weekly auctions. From the January 15 auction, the government increased weekly allocations from 1 lakh tons to 1.5 lakh tons. However, analysts suggest that a significant price impact would require weekly allocations to rise to 3-4 lakh tons.

Market participants are now focused on the next Food Corporation of India (FCI) auction, scheduled for late evening today. If the government maintains the allocation at 1.5 lakh tons, prices are expected to trade steady to slightly firm in the near term. Conversely, an increased allocation could exert downward pressure on prices.

Outlook: New Crop Arrival to Cap Price Gains

With new crop arrivals expected in some regions within weeks, the scope for a significant price rally remains limited. While prices could see brief firmness, government auction policies and the volume of wheat released will largely determine the market’s direction in the coming sessions.


(By Commoditiescontrol Bureau; +91 98201 3018)


       
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