November 15, 2010

Wheat rises 2% on weak arrivals at India's major mandies

Diminutive arrivals in major mandies of India prompted the strong gains in wheat market in the last one whole week, with future prices gaining almost 2%.

As per market sources, the daily arrivals of wheat in Delhi mandi have been reduced to 30-40 trucks from 60-70 trucks reported last week due to higher transportation charges from Karnal mandi to Delhi mandi. As per Delhi traders, traffic police of Delhi has implemented the ban on overloading of trucks and tractor trailers and this has reduced the arrivals of wheat in and around Delhi markets. Traders mentioned that extra freight charges resulted in wheat prices in Delhi gained to INR1,310 (US$29.11) per quintal.

Consequently, the future prices of wheat NCDEX December Benchmark contract increased by INR26 (US$0.58) per quintal in last one week, trading at INR1,275 (US$28.34) per quintal.