Wheat futures recover on short-covering

Wheat futures recovered by Rs 9.20, or 0.74 per cent, to Rs 1,250.40 per quintal, as speculators covered up their positions amid pick up in spot demand.

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 August contract recovered by Rs 9.20, or 0.74 per cent, to Rs 1,250.40 per quintal, with an open interest of 12,990 lots.

The grain for delivery in September contract also traded Rs 9.20, or 0.73 per cent higher at Rs 1,268 per quintal, with an open interest of 5,820 lots, while July contract up by Rs 7.60, or 0.62 per cent, to Rs 1,233.60 per quintal, with an open interest of 26,150 lots.

Marketmen said recovery in wheat prices at futures market was due to covering up of short positions by speculators at prevailing prices, but government's decision to release five million tonnes of grain in the open market helped in reducing gains.