Wheat Prices Show Stability and Mild Gains After Recent Declines

Mumbai, June 27 (Commodities Control): Following a period of weakness, wheat prices in major markets exhibited a trend towards stability and slight firmness on Wednesday. Sellers hesitated to sell at lower rates, prompting a modest recovery from previous declines attributed to government-imposed stock limits on wheat.

In Delhi, wheat prices rose by INR 10 per quintal to reach INR 2690, while Rajasthan saw an increase of INR 20 per quintal, settling at INR 2670. Bengaluru reported a modest increase of INR 10 per quintal, marking prices at INR 2910 (net). Similarly, Madhya Pradesh witnessed prices rising by INR 10-20 per quintal, with rates now ranging from INR 2620 to INR 2640 per quintal ex-warehouse.

Other regions like Uttar Pradesh saw a rise of INR 10 per quintal to INR 2570, and Uttarakhand observed an increase of INR 20 per quintal to INR 2600. Gujarat also recorded a marginal rise of INR 10 per quintal, with prices at INR 2680. Kolkata maintained stability at INR 2740-2750 per quintal, while Bihar's prices remained unchanged at INR 2550-2560 per quintal. Goa reported steady mill delivered rates at INR 2890-2900 per quintal.

Market analysts noted that most stockists had already adjusted their wheat stocks to below 3000 tons in anticipation of the government's stock limit imposition, mitigating the potential impact on prices.

Active buying activity was observed with rakes purchasing wheat from Etah mandi for delivery to Bengaluru at INR 2900 per quintal. Despite a decrease of INR 30 per quintal in prices by south mills post the government's stock limit implementation, selling activities remained subdued at current rates. Stockists exhibited calm amid the current market scenario, indicating a likely recovery in wheat prices in the near future.

Market observers also highlighted the government's historical pattern of intervening to control wheat prices during periods of significant rise. The recent imposition of stock limits is seen as a preemptive measure, with expectations that additional measures like the Open Market Sale Scheme (OMSS) or adjustments to import duties could be implemented if prices rise sharply again, thereby tempering any potential rapid escalation in wheat prices in the foreseeable future.