Wheat down 0.42% on higher output concerns

Speculators offload as govt procurement picks up, sluggish demand from flour mills also drives price down

Wheat futures prices today fell by 0.42%, to Rs 1,199 per quintal, as speculators reduced their positions on higher production concerns. Also, slackened demand from flour mills also weighed on wheat prices.

At the National Commodity and Derivatives Exchange, wheat for delivery in July traded Rs 5, or 0.42% lower, at Rs 1,199 per quintal, with an open interest of 9,610 lots.

The June contract shed Rs 4, or 0.34%, to Rs 1,183 per quintal, with an open interest of 18,110 lots.

Analysts said the fall in wheat prices at futures trade was due to off-loading of positions by speculators as procurement of grain by the government agencies picked up and estimates of higher output concerns. In addition, sluggish demand from flour mills also had some pressure on wheat futures, they said.