Wheat Prices Gains per Quintal On Weak Sowing Progress in North India

Wheat prices gained more than Rs15 per quintal in last two days triggered by weak sowing in major growing states such as Punjab and Haryana coupled with strong offtake by flour millers in domestic market .

As per latest data by Ministry of Agriculture, wheat has been sown in 70.75 lakh hectare area as on 19th November against 101.62 lakh hectare during corresponding period last year, down 30.37%. This was mainly due to delayed harvesting of sugar cane crop in Uttar Pradesh. However , government is targeting 82 million tonne of wheat in the ongoing rabi season.

As per latest crop report , current weather in Maharashtra, Karnataka and Tamil Nadu is favourable for the germination of the crop. Sowing in Punjab and Haryana is in the last phase whereas it is picking up in the states like Uttar Pradesh and Rajasthan. Rainfall over east Uttar Pradesh and Madhya Pradesh will increase the crop yield due to good moisture. Government officials suggested that wheat sowing in major producing areas are expected to be completed by the end of November

Prices were also supported by strong millers demand. The spot prices of Desi wheat increased by almost Rs20 per quintal in last two trading days due to constant demand of flour millers and traders. The spot prices of Desi - wheat delivery was quoted at Rs 1,240-45 per quintal.

Consequently, the future prices of wheat NCDEX December Benchmark contract increased by Rs15 per quintal in last two days and were trading at Rs1302 per quintal.