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| Big response to wheat futures on Day one |
| BS Reporter / Mumbai May 22, 2009, 00:14 IST |
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Both exchanges record a total Rs 60 cr turnover
Wheat futures contracts got an overwhelming response from commodity markets’ participants today on both MCX and NCDEX, the first day of the re-launch of the contracts in the commodity.
The total trading volume was 52,410 tonnes. On the MCX, the first trade was put through at Rs 1,202 per quintal (pqtl). The price gradually slipped to Rs 1,140 pqtl before closing at Rs 1,144. The total turnover and open interest recorded were Rs 33.2 crore and 6,280 tonnes, respectively. The exchange recorded a trading volume of 28,840 tonnes.
On NCDEX, the June contract opened at Rs 1,135 pqtl. After reaching a high of Rs 1,150 pqtl, wheat futures slipped to close at Rs 1,136. The exchange generated a total revenue of Rs 27 crore from wheat contracts with total traded volume of 23,570 tonnes. It witnessed an open interest for 8,990 tonnes.
“Traders’ sentiment towards wheat futures is very positive. They feel it will revive the overall dynamics for agri commodities,” said Naveen Mathur, associate director, commodities and currencies, Angel Broking.
The commodity was banned from futures trading in February 2007 to check rising inflation. Wheat has 1.38 per cent weight in the wholesale price index.
“Corporate clients were also receptive. They did not have any fear of suspension (again) as the UPA government is in power again without support from the Left and the Lalu Prasad-led Rashtriya Janata Dal, the two parties that stressed on suspension two years ago,” said Harish Galipelli, head, research, Karvy Commodities Broking Ltd.
Currently, wheat is trading near the minimum support price (MSP) of Rs 1,080 pqtl on bumper production in 2009 and a higher output estimate for 2010. Traders feel the spot price may fall below the MSP.
Wheat prices have remained stable since 2008 on the back of record output and procurement. The Food Corporation of India (FCI), the government’s grain procurement agency, has announced 22.69 lakh tonnes of wheat buying from farmers, with production for 2009 estimated at 78 million tonnes.
Meanwhile, the commodity has surged by Rs 50 pqtl in the past two days in the physical market in New Delhi’s mandis on increased buying by stockists and flour mills.
The benchmark wheat MP (deshi) firmed up to between Rs 1,400 and Rs 1,700 and wheat dara (for mills) was sold in the range of Rs 1,080-1,105 pqtl.
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