New Delhi, June 19 (Commoditiescontrol): Wheat prices continued to trade steady to firm across major centers on Wednesday, supported by market speculation regarding potential changes to the duty structure on imports as indicated by recent government reports.
The procurement of wheat is largely complete, with the final figure estimated at 26.5 million tons, slightly above 265 lakh tons as small quantities continue to arrive from Punjab and its neighboring areas. This falls significantly short of the government's target of 37.2 million tons.
Recent reports suggest the government may provide additional wheat supplies for the "Bharat Atta" scheme. While this has limited a sharp rise in wheat prices, the quantities involved are relatively low, implying no major immediate impact on prices.
Market Prices
- Delhi: Steady at INR 2660-2670 per quintal
- Rajasthan (new wheat): Steady at INR 2650-2660 per quintal
- Bengaluru: Up by INR 20 per quintal at INR 2900 per quintal (net)
- Madhya Pradesh: Up by INR 10 per quintal at INR 2620-2630 per quintal (ex warehouse)
- Uttar Pradesh: Steady at INR 2560-2570 per quintal
- Uttarakhand: Steady at INR 2580 per quintal
- Gujarat: Steady at INR 2670 per quintal
- Kolkata: Steady at INR 2750 per quintal
- Bihar: Steady at INR 2550-2560 per quintal
- Goa (mill delivered rates): Trading at INR 2900 per quintal
Rack loading has commenced in Madhya Pradesh, which is likely to have a bullish impact on wheat prices. Meanwhile, lower government procurement and a weak stock position, coupled with the lack of an imminent OMSS (Open Market Sale Scheme), are expected to support wheat prices in the near term.
There are reports of multinational companies actively purchasing wheat in Central India, and there has been an uptick in buying from South Indian millers in recent days, although their activity has tempered after substantial purchases in the past few weeks.
Heatwave conditions are expected to persist in southern states for a few more days, with temperatures likely to drop by the weekend. As the monsoon covers more of India, demand for processed wheat products is anticipated to improve. Given recent government statements, it appears unlikely that OMSS will be implemented soon, minimizing its impact on current wheat prices.
Traders are advised to remain cautious and operate on a hand-to-mouth basis, as the government might announce OMSS schemes or impose stock limit measures in the coming weeks. Given the current weak supply scenario, wheat prices are expected to rise by INR 20-40 per quintal by the end of June. Should the government delay the start of OMSS into July, wheat prices are likely to extend gains further into the new month.
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