OfBusiness Grains Dailies | 7th July 2023

Price

• Delhi wheat prices showed more fluctuations, with UP and Rajasthan line varieties starting trading at Rs. 2,435 to Rs. 2,440 per quintal.
• Maize prices in Dahod remain steady at Rs. 2020 per quintal, unchanged from the previous day.
• Paddy (Basmati) prices in Bulandshahr, Uttar Pradesh, remain largely unchanged from the previous day, with trading occurring at Rs. 3000-3040 per quintal based on specifications.

Demand and Supply

• The Food Corporation of India (FCI) announced the sale of approximately 1.3 lakh tons of wheat, representing 32% of the total, in the second auction. This is an increase compared to the 21% sold in the first round. However, the second auction allocated around four lakh tons, indicating lower-than-expected participation levels.
• French soft wheat yields are projected to surpass their 10-year average by approximately 5%, thanks to favorable sowing conditions and consistent rainfall in early spring.

News

• After experiencing a surge of over 5% the previous day, wheat futures contracts on the Chicago Board of Trade (CBOT) witnessed a decline on Thursday due to technical factors and profit-taking. The market was also weighed down by weak U.S. export demand.
• Karnataka has urged for the prompt resumption of the Open Market Sale Scheme-Domestic (OMSS-D) for rice and wheat in all states. The central government had previously halted the scheme on June 13, excluding North Eastern states, hilly states, and regions dealing with law and order issues or natural disasters.

OFB’s Opinion

• Given this situation, it may be beneficial for millers to explore sourcing wheat from the open market in addition to relying solely on OMSS. This strategy could potentially provide solid support for wheat prices.
• Maize prices are gradually rising due to stockists’ purchases, and this increase is expected to impact the price of bajra as well. Bajra crop is limited in the Hathras region, which further contributes to the price hike.