New Delhi, May 21 (Commoditiescontrol): Wheat prices continued to trade steady to firm across major centers today, supported by weak domestic arrivals and reports of relatively low stock availability with the government. The reduced likelihood of the government initiating the Open Market Sale Scheme (OMSS) soon further bolstered market sentiments.
Price Movements Across Major Centers:
- Delhi: Prices increased by INR 20 per quintal, reaching INR 2510 per quintal.
- Rajasthan: New wheat traded steady at INR 2570 per quintal.
- Bengaluru: Prices rose by INR 10 per quintal, reaching INR 2860 per quintal (net).
- Madhya Pradesh: Prices increased by INR 15 per quintal, reaching INR 2575 per quintal ex-warehouse.
- Uttar Pradesh: Prices went up by INR 10 per quintal, reaching INR 2460 per quintal.
- Gujarat: Prices remained steady at INR 2610 per quintal.
In Uttar Pradesh, Shahjahanpur mandi prices firmed by INR 10, reaching INR 2355 per quintal, with arrivals significantly lower at 3000 quintals compared to 8000-10000 quintals during the same period last year.
South millers are in a buying mode, but supplies remain weak, indicating that wheat prices are likely to remain firm in the near term. Farmers are holding back their crops, anticipating further price increases.
The government is struggling to procure wheat in the desired quantities at current rates. Wheat procurement has reached 26.05 million tons and is set to surpass last year's figure of 26.2 million tons in the coming days but is expected to fall short of the government target of 30 million tons.
Arrivals have declined significantly, and wheat supplies are not easily available at current rates. Government procurement is slow, making significant increases in procurement unlikely for now.
Most stockists are unlikely to sell their supplies in the coming months, and with buyers finding it difficult to get supplies at current rates, wheat prices are expected to rise by INR 50-75 per quintal in the near term. Additionally, the sharp rise in global wheat prices due to unfavorable weather conditions in Russia and Ukraine makes imports at lower rates challenging.
Overall, wheat sentiments remain strong in the medium to long term, driven by weak domestic arrivals, low stock availability, and strong global market trends. Prices are poised to increase further as the supply scenario remains tight and demand continues to be robust.
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