Wheat down 0.4% on higher supply

Govt's decision to sell wheat from its central godowns at subsidised rates influences prices

Wheat futures prices today fell by Rs 6 to Rs 1,460 per quintal as speculators reduced positions amid higher supplies in the spot market.

Government's decision to sell wheat from its central godowns at subsidised rates put pressure on wheat futures prices.

At the National Commodity and Derivatives Exchange, wheat for delivery in October was trading Rs 6, or 0.41%, down at Rs 1,460 per quintal, with an open interest of 9,920 lots.

November wheat fell by similar margin to trade at Rs 1,447 per quintal in an open interest of 9,340 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's decision to sell grain at subsidised rate of Rs 12.85 per kg to check prices and clear surplus stocks.

The government is 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).