Wheat futures weaken on profit-booking

Wheat prices eased by 0.51 per cent to Rs 1,561 per quintal in futures market today as traders booked profits, driven by low demand from flour mills in the spot market.
At the National Commodity and Derivatives Exchange, wheat for delivery in far-month May declined by Rs 8, or 0.51 per cent to Rs 1,561 per quintal with an open interest of 1,750 lots.
Likewise, the wheat for delivery in April contracts traded lower by Rs 6, or 0.39 per cent to Rs 1,545 per quintal in 3,840 lots.
Analysts said apart from profit-booking by participants, fall in demand from flour mills in the spot market against adequate stocks on higher supplies from producing regions position mainly attributed fall in wheat prices at futures market.

Meanwhile, the government extended the 25 per cent import duty on wheat by another three month till June to curb imports as domestic production is estimated to rise by over 8 per cent this year.
Wheat production is projected to increase by 8.42 per cent to 93.82 million tonnes in 2015-16 crop year as against 86.53 million tonnes in the previous year, despite deficient monsoon during 2015.