Wheat Prices Face Pressure from Increasing Arrivals; Trade Steady to Weak

New Delhi, April 8 (CommoditiesControl): Wheat prices in various markets traded steady to weak as the ongoing trend of increasing arrivals continued to exert pressure on prices.

In Delhi, wheat prices traded weaker by INR 50 per quintal, reaching INR 2450 per quintal today. Meanwhile, Rajasthan saw new wheat trading steady at INR 2520 per quintal, with arrivals reported at 20,000-22,000 metric tons. Gujarat witnessed new wheat trading steady at INR 2490-2500 per quintal.

The Uttar Pradesh market also experienced weakness, with prices declining by INR 30 per quintal to INR 2450 per quintal, while loose mandi rates were reported at INR 2325 per quintal. Madhya Pradesh wheat traded steady at INR 2525 per quintal ex-mill.

In the south, Hyderabad's Madhya Pradesh new wheat line traded steady at INR 2750 per quintal, while spot Bangalore's Madhya Pradesh line was recorded at INR 2820 per quintal, with a 4% cash discount applicable on the above rates.

Kolkata's wheat prices, however, traded steady at INR 2590 per quintal, with supplies sourced from Bihar and Uttar Pradesh. Bihar witnessed new wheat prices declining by INR 80 per quintal to INR 2400 per quintal due to arrivals of the new crop in Barauni.

Wheat procurement has reached 0.7 million tons by April 7, 2024, with the majority procured in Madhya Pradesh. The government aims to procure 30 million tons of wheat in the current marketing season.

A renowned private agency has estimated the country's wheat production at 105.6 million tons, up by 2.7 million tons from last year. However, the government has estimated production at 112 million tons for 2023-24.

Despite slightly lower production estimates from private agencies, the numbers still indicate a bumper crop this year. Given the current cautious sentiments, a significant number of private traders may refrain from aggressively stocking wheat in the near term, making any sharp rise in prices unlikely. Additionally, active government procurement is expected to limit any sharp declines in prices

(CommoditiesControl Bureau; +91-9820130172)