Wheat Prices Show a Rising Trend Again

12-Feb-2025 10:19 AM

Wheat Prices Show a Rising Trend Again
★ During the first tender, wheat prices in Delhi were Rs. 3120 per quintal, but by January 4, 2025, the price reached a high of Rs. 3360. Subsequently, on January 7, the price fell to Rs. 3060, and by March 14, it rose again to Rs. 3320. Following this, the OMSS tender allocation was increased to 2.5 lakh tons, but due to lower bids in the tender, the price dropped to Rs. 3050 per quintal by ★ January 31, 2025. However, in February, a rising trend in prices began. On February 6, the price was Rs. 3120, and on February 11, it closed at Rs. 3220 per quintal.
★ There were reports of deals being made at even higher prices on February 11, but no concrete evidence was found, so I Grain India did not report these transactions.
★ Today, FCI will conduct the 11th tender for the sale of wheat. In this tender, 2.5 lakh tons of wheat will be sold.
★ I Grain India expects a significant quantity of wheat to be sold in this tender, but the sale might occur at lower prices.
★ Wheat arrivals in the mandis (markets) are extremely weak, and FCI wheat is only being provided to millers. Due to the scarcity of wheat in the mandis, a bullish trend in prices has begun once again.
★ New wheat crop will start arriving in some regions at the beginning of March. So far, the crop condition is good, though some areas are experiencing higher temperatures.
★ I Grain India believes that once wheat procurement begins, the sale will be stopped first. Wheat arriving in the mandis will likely be sold quickly. Demand will remain, and it seems unlikely that prices will fall, with the expectation that prices will remain above the MSP.