OfBusiness Grains Dailies

9th Jun’23

Price

• Wheat prices in Delhi’s market opened at Rs. 2,470 per quintal for UP and Rajasthan varieties.
• Pipariya market opened at Rs. 2,240 to Rs. 2,270 per quintal for wheat based on quality specifications.
• Bajra prices on NCDEX declined to Rs. 2,138, while market prices are similar with Dahod at Rs. 2,150-2,200 for the Gujarat variety and Rs. 1,750 for the MP variety.
• Maize prices are decreasing in the market due to large production this season, trading at Rs. 1,900 in Bharuch, Gujarat.

Demand and Supply

• Surplus wheat production and procurement have led to a reduction in import demand this year, according to the DGFT. FCI procurement has exceeded 31.2 million tonnes, surpassing last year’s ~29 million tonnes.
• Although there has been an increase in maize arrivals at mandis, prices for desired quality with minimal moisture content are expected to remain steady at around Rs. 1,675 to Rs. 1,700 per quintal.
• Due to low demand and excess maize production, bajra arrivals in major markets have decreased. The market is anticipated to recover between July and August.

News

• The Punjab government plans to diversify its crop holdings beyond paddy and wheat, including cotton, basmati, sugarcane, pulses, and oilseeds in the new agricultural policy for the upcoming sowing season.
• The collapse of a major dam in Ukraine has led to a surge in global prices for wheat and corn, raising concerns about the country’s ability to export food to Africa, the Middle East, and parts of Asia amid its conflict with Russia.
• Rice prices from India, a top exporter, reached their highest level since early March due to tight supplies and an increase in the government-mandated price for paddy. Meanwhile, rates for rice from Thailand decreased due to lower demand.

OFB’s Opinion

• Stockists are recommended to increase their maize procurement as the market is projected to experience an upward trend once the excess production supplies are depleted.
• Considering the significant disruptions in global supply chains caused by unseasonal rains in China, there may be an increase in the demand for relaxing restrictions on Indian wheat exports.