Wheat futures fall 1.2% on higher supply, rising procurement

Wheat prices drifted by 1.02 per cent to Rs 1,551 per quintal in futures trade today as speculators offloaded positions amid higher supplies from producing regions against reduced offtake in the spot markets.
At the National Commodity and Derivatives Exchange, wheat for delivery in July fell Rs 16, or 1.02 per cent, to Rs 1,551 per quintal with an open interest of 7,030 lots.
The wheat for delivery in June also traded lower by Rs 11, or 0.72 per cent to Rs 1,526 per quintal in 10,050 lots.
Analysts attributed the fall in wheat futures to higher supplies from producing regions after reports of increase in procurement of grain.

Meanwhile, the procurement of wheat during the ongoing marketing year (April-March) has increased eight per cent to 266.68 lakh tonnes so far on account of rise in procurement from major producing states.
Last year, the government had procured 247.80 lakh tonnes of wheat till May 22. Total procurement stood at 250 lakh tonnes in 2013-14 marketing year.