Wheat futures down on increased supplies, govt's decision

Wheat, after recording moderate gains in yesterday's trade, fell back by Rs 2.60, or 0.21 per cent down at Rs 1,245.60 per quintal in futures trade today.

Adequate stocks followed by increased supplies in the spot market and government's decision to release five million tonnes of the grain in the open market too weighed on the wheat prices in futures trade.

At the National Commodity and Derivatives Exchange, wheat for delivery in August contract fell by Rs 2.60, or 0.21 per cent, to Rs 1,245.60 per quintal, with an open interest of 12,670 lots.

Similarly, delivery in July contract fell by Rs 2.40, or 0.19 per cent, to Rs 1,229.20 per quintal, with an open interest of 25,590 lots. It ended 0.46 per cent higher at Rs 1,231.60 per quintal in the previous session.

Marketmen said apart from profit taking by speculators and mounting stocks in the spot market, government's decision to release five million tonnes of the grain in the open market, kept wheat prices under pressure at futures market here.