Wheat prices soften after export ban, but high demand may limit downside

Traders say market is still biased towards demand; while this could come as some relief to the farmers, a major price spike in the months ahead seems unlikely

Wheat prices in the domestic market, which have already softened by Rs 100-200 per quintal following the export ban late Friday might drop by few more rupees before stabilising near the Minimum Support Price (MSP) of Rs 2015 per quintal, traders and market sources said.

They said a big downside from the MSP levels looks unlikely at this point because demand and supply matrix in the market still favour the former.

This could come as some relief to farmers who are holding on to their stocks in anticipation of a big jump in prices in the coming months. However, the