Wheat futures marginally up on short covering

Wheat futures traded Rs 3.20, or 0.25 per cent higher, at Rs 1,284 per quintal after traders created speculative positions on hopes the government may allow exports. Better demand from flour mills in the physical markets also influenced the wheat prices at futures market here.

However, the government's decision to release five million tonnes of grain in the open market and adequate stocks followed by increased supplies in the spot market, limited gains.

At the National Commodity and Derivatives Exchange, wheat for delivery in September contract rose Rs 3.20, or 0.25 per cent, at Rs 1,284 per quintal, with an open interest of 5,050 lots.

The grain for delivery in August contract also gained Rs 3, or 0.24 per cent, at Rs 1,267 per quintal, with a turnover of 10,990 lots.

Similarly, wheat for delivery in current-month July up by Rs 2.60, or 0.21 per cent, at Rs 1,250 per quintal, with a turnover of 23,130 lots. It ended 0.42 per cent up at Rs 1,247.40 per quintal. In spot trading, wheat dara traded higher at Rs 1,250 per quintal in the national capital.

"Speculative positions created by traders in anticipation that the government may allow exports, influenced wheat prices at futures as well as spot markets here", said a wholesale grain merchant in the national capital.

Marketmen said increased offtake by stockists on hopes that the government may allow exports of the grain, also led to a rise in the wheat prices at futures trade here.