Last week Delhi market began with a trading price of Rs. 2700/quintal for the UP/Rajasthan line and Rs. 2825/quintal for the MP line on 13 November 2023. By 18 November 2023, the market saw a dip, with prices ranging between Rs. 2675-2700/quintal. Let’s delve into the recent trends exhibited by the Wheat market during the last week.

Arrivals & Market Dynamics

The arrivals in the Delhi line during the week were 11,500 quintals, showing a
decrease from the previous week’s 19,500 quintals. The weak market situation in Delhi signals caution, yet the fundamentals of Wheat remain robust. Despite some negative data, optimism prevails, suggesting a cautious yet positive outlook for the future.

Region-Wise Variation

Here are the details:

The market witnessed closures in the first three days due to Diwali and Bhai Dooj celebrations, with Madhya Pradesh Mandis also shut due to election-related reasons.
Limited market participation during this period led to stability in the South line market.
Wheat prices in Kolkata and Uttar Pradesh strengthened by Rs. 25 to
50, while Flour mill prices showed mixed trends.
Uttar Pradesh experienced varied price movements, with some markets witnessing a robust increase of Rs. 30, while others saw a decrease of Rs. 30.
In Bangalore, prices remained stable, showcasing a balanced
market scenario.

Crop & Stock Updates

Wheat has been sown in 8.6 million hectares, approximately 5.5% less than in 2022. FCI will offer 3,00,000 tons in its upcoming tender on 22 November 2023.
In the previous tender, 2.84 lakh tons were sold, with the majority of bids placed below Rs. 2250/quintal. The central pool’s total Wheat stock as of 1 November 2023 stands at 218.76 lakh tons.

OFB’s Insight

During the last week, the Wheat market has witnessed varying trends, with regional price fluctuations and disruptions due to festivities and elections. Regional variations in prices, especially in Kolkata and Uttar Pradesh, hint at market resilience.

The closure of Mandis and reduced market participation in Madhya Pradesh influenced the market dynamics. As the FCI prepares for its upcoming tender, market players should stay vigilant, considering the mixed trends in regional markets.