Wheat futures gain 0.55% on good spot demand

Wheat prices advanced by 0.55 per cent to Rs 2,025 per quintal in futures trade today as participants engaged in widening their bets, triggered by tight stocks position at spot market on fall in supplies against rising demand from flour mills.
At the National Commodity and Derivatives Exchange, wheat for delivery in November went up by Rs 11 or 0.55 per cent to Rs 2,025 per quintal with an open interest of 10,390 lots.
On similar lines, wheat for delivery in December contracts traded higher by Rs 8 or 0.39 per cent to Rs 2,042 per quintal in 8,040 lots.

Analysts said expanding of positions by traders amid strong demand from flour mills in the spot market against tight stocks position on fall in arrivals mainly led to rise in wheat prices at futures trade.
Meanwhile, government has no immediate plans to cut further import duty on wheat to a zero level as overseas purchase of the grain still works out to be cheaper at the current customs duty level.
On September 23, import duty on wheat was reduced to 10 per cent from 25 per cent to boost supplies and check prices during Dusshera and Diwali festivals.