International/Domestic Wheat Market

10-Apr-2025 08:51 AM

International/Domestic Wheat Market
★ The U.S. President announced a 90-day suspension of tariffs on countries other than China. During this period, only a 10% tariff will be applied.
★ A heavy 125% tariff has been imposed on all products imported from China.
★ According to the USDA, U.S. wheat exports are expected to range between 100,000 to 400,000 tons for old crop and up to 200,000 tons for new crop.
★ The USDA report is expected to show a reduction in global wheat stocks by 300,000 tons, bringing the total down to 260.39 million tons.
★ In India, the wheat harvest is strong and of good quality. Government procurement has begun in almost all states, with total purchases crossing 2.3 million tons.
★ Madhya Pradesh leads in procurement, followed by Rajasthan.
★ Due to the arrival of a large crop, prices have fallen below the MSP (Minimum Support Price). Increased production and heavy arrivals are keeping downward pressure on prices.
★ In Uttar Pradesh, wheat arrivals are expected to gain momentum in the next 15 days.
★ While Madhya Pradesh and Rajasthan have announced bonuses, leading to higher arrivals at government centers, Uttar Pradesh has not done the same.
★ In UP, lower prices will likely sustain wheat demand. Though the time for stocking has arrived, a sharp price rally like last year is unlikely.