Wheat futures down on increased supplies, govt's decision

Wheat futures fell by Rs 8.60, or 0.68 per cent, to trade at Rs 1,249.40 per quintal today, extending yesterday's losses as traders indulged in reducing their positions, triggered by adequate stocks in the spot markets.

Government's decision to release five lakh tonnes of grain in the open market also kept pressure on the wheat futures here.

At the National Commodity and Derivatives Exchange counter, wheat for delivery in August contract fell by Rs 8.60, or 0.68 per cent, to Rs 1,249.40 per quintal, with an open interest of 12,270 lots.

Similarly, the delivery of July contract also drifted by Rs 7, or 0.56 per cent, to Rs 1,234 per quintal, with an open interest of 21,550 lots. It fell by 0.69 per cent to Rs 1,249.20 per quintal.

Market analysts said apart from mounting stocks in the spot market on increased arrivals, government's decision to release five million tonnes of the grain in the open market, put pressure on the wheat prices at futures market here.