Wheat recovers on hopes of higher export

However, increased supplies and rising procurement in ongoing rabi season limit gains

Wheat futures prices today recovered by  Rs 4, or 0.34%, to Rs 1,178 per quintal, as speculators created fresh positions on hopes that the government may allow more exports of grain.

However, increased supplies in the market and rising procurement of grain in the ongoing rabi marketing season, restricted the gains.

At the National Commodity and Derivatives Exchange, wheat for delivery in June traded Rs 4, or 0.34% higher, at Rs 1,178 per quintal, with an open interest of 22,600 lots.

The July contract rose by a similar margin to Rs 1,196 per quintal in an open interest of 12,330 lots.

Analysts said the recovery in wheat prices at futures trade attributed to speculators creating fresh positions after a Committee headed by PMEAC Chairman C Rangarajan suggested export of two million tonnes of wheat from the government stocks.

They said, however, procurement of grains by the government agencies, limited the gains.