Steady to Weak Wheat Prices Across Major Centers as Govt Decreases Stock Limits

Mumbai, February 12 (Commoditiescontrol): Wheat prices showed a steady to weak trend in major centers, influenced by the government's decision to decrease stock limits, putting pressure on prices. The onset of new arrivals further added to the subdued sentiments in the market.

In Indore mandi, 2500 bags of new wheat arrived, with prices quoted at INR 2450, while Lokwan new wheat was quoted at INR 2600-3000. Rajgarh mandi in Madhya Pradesh reported 6000 bags, and Dhar mandi saw 5000 bags.

Good arrivals in Madhya Pradesh mandis are exerting pressure on wheat prices across major centers in India. Wheat harvesting is gradually gaining momentum, leading to increased supplies in the mandis, and this is likely to keep wheat prices steady to weak in the near term.

While conditions are favorable for a bumper crop, the weather in the coming two months is crucial, and any deviation from normal temperatures could significantly impact wheat yields, affecting the government's estimated production of 114 million tons.

In Delhi, wheat prices slightly declined by INR 20 per quintal to INR 2610 per quintal. Bihar wheat traded steady at INR 2600 per quintal. Kolkata witnessed a decline in wheat prices to INR 2730 per quintal, down by INR 2 per quintal, attributed to increased OMSS supplies in local markets.

The UP market traded steadily at 2580-2600 per quintal, with muted demand from Southern Millers. The UP-Bengaluru line traded at INR 2990 per quintal. Rajasthan reported prices at INR 2580-2600 per quintal, and the MP market remained steady at INR 2600 per quintal, with OMSS supplies putting pressure on prices.

Black Sea wheat is being traded at CNF 278 per ton, with a healthy parity of USD 30-40 per ton if India opens up imports this year. Overall, wheat prices are expected to remain steady to weak, influenced by seasonality and government intervention.