Wheat futures down 0.42% on as procurement increases

Lacklustere demand weighs on prices

Wheat prices in the futures market fell today by Rs 5, or 0.42%, to Rs 1,195 per quintal, as speculators reduced their positions, triggered by reports of rising procurement of grain in the ongoing rabi marketing season, amid slackened demand from flour mills.

At the National Commodity and Derivatives Exchange, wheat for delivery in May traded Rs 5, or 0.42% lower, at Rs 1,195 per quintal, with an open interest of 22,900 lots.

Similarly, wheat for delivery in June shed Rs 3, or 0.25%, to Rs 1,211 per quintal, with an open interest of 14,310 lots.

Analysts said the fall in wheat prices at futures trade was due to positions offloaded by speculators as procurement of grain by the government agencies picked up and sluggish demand from flour mills.

Meanwhile, wheat procurement in the country has risen by 16% to 121.69 lakh tonnes in the current rabi marketing season so far.