June 16, 2010
Indian wheat futures decline on weak demand
India's wheat futures traded on a negative note during yesterday's (Jun 15) session due to weak demand as traders have slowed down buying due to increased wheat prices.
The active NCDEX June contract wheat futures opened at 1279 levels made a low of 1252 levels and traded in the range of 1252 to 1279 and settled at 1261 levels with a negative change of 1.38%.
Private buyers have slowed down their buying activity due to increased wheat prices. Demand from flour millers have reduced too as the traders are waiting for the prices to fall further.
However, according to sources, wheat output of the country is expected to decline by 1-1.5 million tonnes during current year due to high temperature at major growing regions.
Wheat output in Uttar Pradesh, which is the largest producer, is estimated to decline by 15 lakh tonnes due to warm weather, which leads to early maturity and shortens the grain size.
The temperature during maturity period was 4-6 degrees above normal during current season.
