Wheat down 1.25% on hopes of higher output

Wheat futures fell by another Rs 16 to Rs 1,265 per quintal as speculators reduced their positions amid expectations of a higher output this year.

Also, slackened demand from flour mills also put pressure on the wheat futures prices.

At the National Commodity and Derivatives Exchange, June wheat traded Rs 16, or 1.25% lower, at Rs 1,265 per quintal, with an open interest of 1,265 lots.

The April delivery shed Rs 14, or 1.13%, to Rs 1,222 per quintal, with an open interest of 10,380 lots.

Analysts said the fall in wheat prices at futures trade was due to off-loading of positions by speculators, driven by expectations of a higher output this crop year.

Meanwhile, the country is expected to produce 88.31 MT of wheat in the current crop, as per Agriculture Ministry's advance estimates.