Wheat rises in futures trade on lower output estimates

Wheat prices rose by Rs 22 to Rs 1,481 per quintal in futures trade today as speculators enlarged positions amidst tight supplies on reports of lower output estimates.
In futures trading at the National Commodity and Derivatives Exchange, wheat for delivery in May month moved up by Rs 22, or 1.51 per cent to Rs 1,481 per quintal with an open interest of 2,280 lots.
The grain for delivery in June contract also traded higher by Rs 16, or 1.08 per cent to Rs 1,503 per quintal in 26,550 lots.
Market analysts said tight supplies in the physical market following reports of a likely fall in output due to unseasonal rains, mainly helped wheat prices to trade higher at futures market.

Meanwhile, wheat production may fall by 4 per cent during the 2014-15 crop year from record 95.85 million tonnes in the previous year as the crop was affected due to the recent unseasonal rains and hailstorms.