New Delhi, March 20 (Commoditiescontrol): Wheat prices have been marked by a steady to weak trend, largely influenced by market speculations regarding the Food Corporation of India (FCI) maintaining relatively lower Open Market Sale Scheme (OMSS) reserves in the coming months. This has significantly pressured market sentiments, stirring discussions among traders and analysts alike.
A notable delay in wheat arrivals has been reported in key producing regions such as Madhya Pradesh and Rajasthan, attributed to adverse weather conditions experienced over the past two weeks. Despite these challenges, crop conditions are reported to remain favorable, with no major damages observed thus far.
Recent market murmurs have hinted at the FCI setting reserve prices at Rs 2300 for FAQ (Fair Average Quality) and Rs 2275 for URS (Usual Run of Season) from April 1, 2024, until July 2024, subject to further orders. These potential price adjustments have added to the existing market uncertainties.
Today's trading sessions saw Delhi wheat prices weaken by Rs 50 per quintal, settling at Rs 2600 per quintal. Similarly, Gujarat's new wheat prices experienced a decline of Rs 20, ranging between Rs 2460-2480 per quintal. In Uttar Pradesh, the market traded lower by Rs 20 per quintal at Rs 2560 per quintal, while South Madhya Pradesh witnessed steady trading at Rs 2640 per quintal. Spot prices in Bangalore for Madhya Pradesh wheat remained stable at Rs 2750 per quintal.
Kolkata witnessed a decrease of Rs 10-20 per quintal, with wheat prices now standing at Rs 2700 per quintal. Meanwhile, Bihar observed an influx of supplies, causing prices to weaken by Rs 10 per quintal, settling at Rs 2510 per quintal.
In Madhya Pradesh, new wheat mandi prices ranged between Rs 2350-2400 per quintal, with ongoing trading activities for April witnessed in various regions including Chhindwara, Dabra, and Datia. Millers emerged as the primary buyers of new wheat, while stockists refrained from entering the market due to prevailing stock limit norms.
Rajasthan bucked the trend, with wheat prices holding steady albeit with a positive bias, trading at Rs 2490-2500 per quintal.
While official notifications regarding the aforementioned market conditions are yet to be received, market sentiments remain under pressure amid speculations surrounding FCI's reserve prices. The possibility of wheat being sold by FCI at the mentioned reserve prices until July suggests that any significant price surge is unlikely in the near term. Additionally, expectations of bumper arrivals across India in the coming weeks may further dampen prices, however, not by more than Rs 50-100 per quintal, considering the government's active wheat procurement stance.
It's noteworthy that the government is actively procuring wheat at the Minimum Support Price (MSP) of Rs 2275 per quintal, supplemented by a bonus of Rs 125 per quintal in certain states. Consequently, a sharp decline in wheat prices from current levels is deemed improbable given that mandi prices are hovering near procurement rates.
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