Wheat continues to rule firm in UP, more gains likely amid higher FCI's auction price

NEW DELHI, Jan 25 (Commoditiescontrol) - Wheat continued to rule firm in Uttar Pradesh on Tuesday, with prices moved higher by up to Rs 30 in west Uttar Pradesh including Bareilly. In Kanpur too, the mill-gate price of wheat edged up by Rs 5 to Rs 2,150 per quintal. While wheat prices remained unchanged in rest of the states, but traders said that prices may climbed further by Rs 100-125 from current levels as farmers and traders are left with limited and lower quality wheat.

Wheat is also stocked in government godowns due to more procurement in the last season, but due to higher base price of auction from FCI, it is possible that price to reach that level in the mandis. It is worth noting that the base price of the last season's FAQ wheat is Rs 2150 per quintal. Including the cost, its purchase cost will not be less than Rs 2200-2250 per quintal.

Traders said that due to the decline in Corona cases, there is hope of getting relief from restrictions like ban on hotel-restaurants and night and weekend curfew soon. Due to this, the demand for maida is likely to improve. Wheat sentiments may remain strong due to good demand from mills. Wheat offered higher by Rs 25-30 in western Uttar Pradesh including Bareilly. In Bareilly, the mill-gate price was at Rs 2140-2150 and the market price was at Rs 2040-2050 per quintal.

According to trade sources, demand from the mills is coming out well. The arrivals in the mandis have remained negligible. Wheat rose by Rs 5 in Kanpur and other mandis of eastern Uttar Pradesh. In Kanpur, mill-gate wheat sold at Rs 2140-2150 per quintal.

In Delhi, the price of wheat remained unchanged at Rs 2180-2200 per quintal (mill-gate). According to trade sources, the arrival of wheat in Delhi remained weak. While the demand from the mills was good as mills expect the demand for maida to improve soon. In Delhi, the arrival at Lawrence Road today declined from 7000 bags (50 kg per bag) to 6000 bags. By adding the supply of all the mandis and direct mills & atta chakkis, the arrival in entire Delhi is estimated to be 25-28 thousand bags. Dense fog, severe cold wave conditions are now affecting the arrivals in the mandis.

Wheat remained stable in Rajasthan today. The arrival of wheat in Hadauti region of Rajasthan rose from about 2800 bags (100 kg per bag) to 3500 bags. The arrival in entire Rajasthan was 6000-7,000 bags. In Bihar's Begusarai, the market price of farmers' wheat remained stable at Rs 1950-1975 per quintal. Warehouse wheat sold at Rs 2040-2060 per quintal. There was no change in the price of wheat in most of the mandis of Indore and Madhya Pradesh.