WHEAT NEWS

New Delhi, June 21 (CommoditiesControl): Wheat prices maintained their steady to firm trend across major markets yesterday as sentiments were buoyed by reports of sufficient government stocks, reducing immediate concerns over price controls. Market participants expressed confidence that the government may refrain from intervening aggressively, given its perceived ample stockpile.

Over the past week, wheat prices have risen by INR 25-60 per quintal across different origins. The government's stance on maintaining market interventions has led to diminished expectations of a reduction in import duties in the near term.

In Delhi, prices edged up by INR 5-10 per quintal yesterday to settle at INR 2685 per quintal, marking a weekly increase of INR 25 per quintal. Supplies primarily originated from Uttar Pradesh, as wheat from Rajasthan commanded higher prices.

In Uttar Pradesh's Shahjahanpur, prices traded at INR 2580 per quintal, climbing by INR 25-30 per quintal over the past week. Farmers are selling wheat as per their immediate needs, resulting in daily arrivals of around 800-1000 tons.

Rajasthan witnessed steady trading at INR 2640 per quintal, with prices rising by INR 40 per quintal in the last week. Similarly, Gujarat prices held firm at INR 2670 per quintal, although wheat availability in Gujarat is rapidly declining, prompting millers to source supplies from other states.

In Bengaluru, prices remained stable at INR 2920 per quintal, reflecting a weekly increase of INR 60 per quintal as rail loading from Uttar Pradesh and Madhya Pradesh to southern regions commenced, supporting local prices.

Uttarakhand recorded a modest uptick of INR 10 per quintal to trade at INR 2610 per quintal yesterday. Kolkata maintained stability at INR 2750 per quintal, while Bihar reported an increase of INR 10 per quintal to trade at INR 2580-2590 per quintal.

Goa's mill-delivered rates rose by INR 10 per quintal in the last session to reach INR 2920 per quintal.

Internationally, Black Sea quotes stood at USD 280 per ton, with additional local freight and handling charges amounting to INR 3700 per ton, resulting in mill-delivered prices of INR 27000 per ton in India. Global wheat prices experienced a slight softening by 3-4%, attributed to Turkey's import restrictions and a marginal improvement in Russian crop forecasts.

Looking ahead, market dynamics indicate that India remains a crucial player in the global wheat trade, with significant stocks available for potential import redirection. However, concerns persist among local stakeholders regarding the impact of potential duty reductions on global price fluctuations and domestic market stability.

Participants caution that while current physical market supplies remain constrained, prices have not surged sharply due to sluggish offtake in processed wheat products. A potential improvement in processed wheat demand could trigger substantial price increases if government intervention through the Open Market Sale Scheme (OMSS) is delayed.

Traders are advised to remain cautious as government policies, including potential OMSS implementations and stock limit measures, could influence market trends in the coming weeks. Given the current supply constraints, wheat prices are anticipated to rise by INR 20-40 per quintal by the end of June. However, if OMSS is delayed beyond July, further price gains are expected in the subsequent period.