Wheat - Possible Decline in the Future
Last week, wheat opened in Delhi at ₹2625-2630 per quintal and closed at ₹2625 on Saturday. Due to a lack of demand during the week, there was a decline of ₹5 per quintal. This week, with Monday being Eid, Tuesday marking the opening of the financial year, and Wednesday being Ashtami, most markets remained closed, resulting in little movement. The opening stock for April has not yet been reported. If the government has over 110 lakh tons of wheat remaining, this year might not be as favorable for stockists. The government�s procurement figures are better than last year. Last year, Gujarat did not send any wheat to the government, but this year, 861 tons have already been procured from Gujarat. Farmers in Madhya Pradesh and Rajasthan have welcomed the government's decision to procure wheat at ₹2600 per quintal. Based on current trends, it is expected that the government may receive 20 to 30 lakh tons more wheat this year compared to last year. The government's procurement target is 310 lakh tons. Market Conditions: Wheat prices in flour mills have strengthened by up to ₹50 per quintal, although prices of atta, maida, and suji continue to decline. There has been no significant change in the Rajasthan market, and Baran Mandi saw a bumper wheat arrival. In Madhya Pradesh and Gujarat, wheat prices remained strong, increasing by ₹25 to ₹50 per quintal by the end of the week. Kolkata Market: Even during the peak arrival period, there has been no significant decline in wheat prices in the Kolkata market. Prices here are expected to stay at a minimum of ₹2700 or ₹2650 per quintal. Due to strong demand and arrivals of dry wheat, prices are likely to remain firm. The wheat production estimate is around 1160 lakh metric tons. However, the government has started wheat procurement in Madhya Pradesh at a minimum support price (MSP) of ₹2425 per quintal, along with a ₹175 bonus. Procurement is also ongoing in Rajasthan. As a result, wheat prices in these states are holding steady at ₹2650-2660 per quintal, and there is little room for a decline of more than ₹50. In the Chhindwara-Multhai-Linga line, despite the pressure of new wheat arrivals, the market has strengthened due to stockists� buying activity. This month, as new wheat begins to arrive in Haryana and Punjab, prices in these states could fall by ₹100 per quintal.