Wheat down 0.28% on higher supply

Withdrawal of special margin on long side contracts caps losses

Wheat futures prices fell by 0.28% to Rs 1,443 per quintal today as speculators reduced positions due to higher supplies in the spot market, following the government's decision to sell grain from its central godowns at subsidised rate.

Withdrawal of special margin of 10% on long side contracts of wheat by the authorities capped the losses.

At the National Commodity and Derivatives Exchange, wheat for delivery in October traded Rs 4, or 0.28%, down at Rs 1,443 per quintal, with an open interest of 7,980 lots.

November wheat fell by Rs 3 to trade at Rs 1,417 per quintal, with an open interest of 10,740 lots.

Marketmen said the fall in wheat prices at futures trade was due to adequate stocks in the market on higher supplies after the government announced selling grain at subsidised rates.

To check prices and clear surplus stocks, the government has started selling wheat from its central godowns at a subsidised rate of Rs 12.85 per kg to bulk users like flour millers under the open market sale scheme (OMSS).