FCI stock release could douse wheat prices

Wheat. Español: Trigo. Français : Blé. Magyar: Búza. Tiếng Việt: Lúa mì. (Photo credit: Wikipedia)

English: Wheat (Triticum aestivum) near Auvers-sur-Oise, France, June 2007 (Photo credit: Wikipedia)

KARNAL, AUG. 24: 

Bullish trend continued in the wheat market with the prices of dara variety moving further up by Rs 200 a quintal and touching the highest level of the season on Friday.

Following domestic demand for flour, interest in dara wheat remained firm, said Sewa Ram, a wheat trader. Prices have increased by Rs 300 a quintal since last weekend and it may continue until the FCI releases its stocks, he added.

In the physical market, dara prices increased by Rs 200 and quoted at Rs 1,590-1,600 a quintal. Around 50 tonnes arrived from Uttar Pradesh and the stocks were directly offloaded at the mills. Mill delivery was at Rs 1,590-1,595 a quintal while delivery at the chakki was at Rs 1,600 a quintal.

Domestic consumers and flour mills are finding the going tough as they are not able to procure adequate stocks to meet their demand. The reason behind low arrivals from Uttar Pradesh is that the State’s farmers are heading towards Delhi with their stocks as they are reaping better margins at the Capital, said sources.

At the national capital, dara was quoted around Rs 1,700 a quintal.

On the other hand, desi wheat varieties were quoted without much change. Desi wheat ruled between Rs 2,000-2,150 a quintal. Stocks of desi wheat are almost over, said market sources.

On the National Commodity and Derivatives Exchange, wheat for September delivery increased by Rs 43 to Rs 1,601 a quintal, it had touched a high at Rs 1,612 a quintal earlier on Friday. October contracts went up by Rs 12 and traded at Rs 1,595 a quintal. Spot wheat prices on the exchange-traded at Rs 1,490 a quintal.

FLOUR PRICES

Following an uptrend in wheat prices, flour too went up by Rs 200 and quoted at Rs 1,590 for a 90-kg bag. On the other hand, after witnessing an uptrend earlier this week, chokar prices remained unchanged and quoted at Rs 670 for a 49-kg bag.

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