New Delhi, April 15 (CommoditiesControl): Wheat prices maintained a rangebound trend with a positive outlook in major centers, supported by robust government procurement activities. Although a slight decrease in mandi arrivals was observed in Madhya Pradesh (MP) and Rajasthan, aiding the price trend, gains were tempered by the absence of significant bulk stockists.
The gradual decline in wheat arrivals has been particularly notable in major mandis of Rajasthan, with Kota witnessing a decrease from 1.5-1.7 lakh bags at the beginning of April to around 1.25 lakh bags on Monday. Similarly, a similar downtrend in arrivals has been noted in key mandis of MP.
Government procurement of wheat has reached 1.983 million tons by April 15, indicating strong procurement activity. With government procurement remaining robust, any substantial decline in wheat prices from current levels appears improbable.
In the Delhi market, prices remained stable at INR 2,425-2,430 per quintal. Rajasthan's new wheat also traded steadily at INR 2,520 per quintal, with arrivals ranging between 25,000-27,000 metric tons. Gujarat's new wheat maintained stability at INR 2,490-2,500 per quintal.
In Uttar Pradesh (UP), market rates also held firm at INR 2,400-2,410 per quintal, while loose mandi rates were reported at INR 2,280-2,300 per quintal. MP wheat traded unchanged at INR 2,525 per quintal ex-mill.
In the southern market, Hyderabad saw a slight increase of INR 10 per quintal in new MP wheat, reaching INR 2,750 per quintal. Bangalore witnessed steady trading at INR 2,840 per quintal (4% CD applicable on above rates).
Despite improved buying activity in the South, wheat prices in Kolkata and Bihar remained rangebound in recent weeks due to inadequate supplies to meet current demand. Slow harvesting in Bihar has not alleviated arrival pressures, with stockists remaining active amid uncertainties over government policies and relatively high moisture content, particularly in Bihar.
Although some uptick in stockist activity has been observed in Bihar at INR 2,400 per quintal in godowns, prices are unlikely to decline by more than INR 15-30 per quintal even with arrivals in Bihar. Moreover, as moisture levels decrease over the next 8-10 days, improved stocking activity may lend support to prices.
Freight costs from Bihar to Kolkata stand at around INR 160, making it unlikely for stockists to achieve parity for Kolkata mill delivery at INR 2,550, given their current buying prices. Considering the prevailing circumstances, Kolkata mill delivery prices are trading close to their bottom levels.
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