Wheat Prices Remain Steady to Weak Amid Increasing Arrivals

New Delhi, April 9 (CommoditiesControl): Wheat prices continued to trade with a steady to weak tone as mounting arrivals exerted pressure on prices across various markets.

In Delhi, prices softened by INR 25 per quintal, settling at INR 2425 per quintal today. Meanwhile, in Rajasthan, new wheat prices held steady at INR 2520 per quintal with arrivals ranging between 20,000 to 22,000 metric tons. Similarly, in Gujarat, new wheat traded steady within the range of INR 2490 to 2500 per quintal.

The Uttar Pradesh market witnessed a decline of INR 50 per quintal, reaching INR 2400 per quintal, while loose mandi rates dipped by INR 20 per quintal to INR 2300 per quintal. Meanwhile, in Madhya Pradesh, wheat traded steady at INR 2525 per quintal ex mill.

In the southern market of Hyderabad, Madhya Pradesh new wheat remained stable at INR 2750 per quintal, while spot prices in Bangalore saw a slight uptick of INR 20 per quintal, reaching INR 2840 per quintal. (Note: 4% cd is applicable on above rates)

Kolkata witnessed weaker wheat prices, down by INR 20 per quintal at INR 2570 per quintal. Supplies from Bihar and Uttar Pradesh contributed to this decline, with Bihar's new wheat prices dropping by INR 20 per quintal to INR 2380 per quintal due to the influx of the new crop in Barauni.

Wheat procurement has reached 0.8 million tons by April 9, 2024, with a significant portion 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 the previous year. Despite being lower than the government's estimate of 112 million tons for 2023-24, these numbers indicate a bumper crop this year.

Given the cautious sentiments prevailing in the market, a considerable number of private traders may refrain from aggressively stocking wheat in the near term. Continuous influx of new arrivals is ensuring adequate supply, making any sharp rise in wheat prices unlikely in the near future.

Conversely, a significant decline in prices also appears unlikely due to active government procurement efforts, which would mitigate any downward pressure. Overall, wheat prices are expected to remain range-bound in the near term amidst these market trends.