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Informist, Wednesday, Aug 28, 2024

By J. Navya Sruthi

MUMBAI – After a long weekend, wheat traders across the country expect prices to increase due to firm demand, lower arrivals in mandis, and uncertainty about the government's weekly sales. Wheat prices in Mumbai's Vashi mandi were slightly up but those in Rajasthan's Kota were steady today, traders said. Prices of rice and maize were steady in key markets today, traders said.     

Prices of mill-quality WHEAT rose slightly by 25 rupees in Vashi mandi to 2,975 rupees per 100 kg, as the mandi was closed for the last three days, Devendra Vora, a local wholesale broker, said. Mandis were closed on Monday and Tuesday on account of Janmashtami.

Prices of mill-quality wheat were steady today in Kota, at 2,600-2,625 rupees per 100 kg, and arrivals rose from the previous day to 9,000 bags (1 bag = 50 kg), Aniket Mehta, a local trader said. Usually during this time there will be arrivals of around 25,000 bags, but now there are not even 10,000 bags, Mehta said. "Huge demand and lower supply will keep wheat prices higher and a 100 rupees rise is expected (in Sep)," he said.

There has been news that the government will likely start the weekly electronic auction for the sale of wheat in October, but the government has not confirmed it yet, Mehta said. Farmers have also sold almost the whole wheat stock and major processors and millers are now waiting for the government's open market sales, Mehta said. 

"Till the end of December 2024, it is very dangerous for wheat," Vora said, adding that prices are very likely to rise. The government also has lower wheat stocks this time, which will have to cater to the consumers under the free food grain scheme, he said. 

Meanwhile, wheat prices on the Chicago Board of Exchange rose due to firm export demand for the world's largest exporter, Russia. Export demand for Russian wheat remains relatively high, although a stabilisation in port prices over the past week could indicate a slight decrease, Dow Jones quoted research firm SovEcon as saying in a note. At 1550 IST, the most-traded December wheat contract on the CBOT was up 0.4% from its previous close at $5.37 per bushel.  

Prices of MAIZE were steady at 2,850-2,900 rupees per 100 kg in Davanagere, Karnataka, Shiva Kumar, a local trader, said. There were no fresh arrivals and local poultry farms used up their stocks while others bought from Bihar and Madhya Pradesh, Kumar said. The new maize arrivals in Karnataka will start around October, Kumar said.

At 1550 IST, the most-traded December corn contract on the CBOT was down 0.5% from its previous close at $3.90 per bushel (1 bushel = 27.2 kg).

Prices of RICE were steady from the previous day at 5,500-6,200 rupees per 100 kg in Bhavanipuram, Vijayawada, Ravi Shankar, a local trader said. Prices of basmati rice were also steady in Vashi at 7,000-7,300 rupees per 100 kg, Vora said. 

End

US$1 = 83.95 rupees

Edited by Vidhi Verma

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