Mumbai, March 7, 2024 (Commoditiescontrol): Wheat prices experienced mixed movements across major Indian markets today due to conflicting weather patterns and government policies. Delayed crop arrivals caused by unfavourable weather supported prices in certain regions, while improved conditions in others put downward pressure on prices. New wheat trades between INR 2300-2400 per quintal in major mandis.
Farmers in Madhya Pradesh appear hesitant to register their crops this year, with the registration deadline extended to March 10. Unconfirmed reports of the government potentially purchasing wheat at INR 2700 per quintal in Madhya Pradesh add to bullish market sentiment.
In Delhi, prices fell by INR 50 per quintal to INR 2600 per quintal. Gujarat new wheat traded higher at INR 2520 per quintal, while Rajasthan wheat remained steady at INR 2500-2520 per quintal. Uttar Pradesh wheat was weakened by INR 75, trading at INR 2575 per quintal, with millers as the main buyers. South UP line stayed stable at INR 2750 per quintal.
Improved weather in Madhya Pradesh led to increased arrivals, resulting in an INR 50 decline to INR 2425 per quintal. South MP line saw a smaller drop of INR 10 per quintal to INR 2725. Rake loading for southern states has begun in Madhya Pradesh, with April forwards trading at similar levels. Bihar wheat held steady at INR 2650 per quintal, while Kolkata wheat traded at INR 2850 per quintal, supported by limited supplies.
Recent rains likely damaged the quality of some wheat crops, meaning good quality wheat will likely command a premium. Lower-quality wheat may face price pressure. While higher supplies of lower-quality wheat could exert downward pressure, prices are not expected to fall more than INR 50-75 per quintal. Government procurement at the MSP (Minimum Support Price) with bonuses in some states will provide a price floor. Market participants should watch for further government policy announcements to gain clearer insight into the future wheat price outlook.
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