June 14, 2010


Indian wheat futures scale new contract highs on weak supplies
 

On the back of waning arrivals in the spot market along with a possibility of weak production in the current year enabled India's wheat prices to scale new highs.
 
Industry sources mentioned that India is expected to produce around 79-79.5 million tonnes of wheat in the current year, down nearly 1-1.5 million tonnes from previous year due to high temperature in northern and western region of the country. The summer temperatures have been 4-6 degrees above normal over most parts of northern and central India since March. This would reduce the maturity period of wheat crop and also shorten the grain size.
 
As on June 12, 2010, the government's wheat procurement has declined nearly around 7% to 22.46 million, since it began on April 1. According to the Food Corporation of India (FCI) data, Punjab has contributed the most to the central pool at 10.2 million tonnes this marketing year, down 5% from last year.
 

The prices of July NCDEX benchmark contract have scaled new contract high of INR1305 (US$28) per quintal and are currently trading at INR1305 per quintal.

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