Wheat futures traded range bound and ended on a slightly negative note during yesterday’s session.

The March contract on MCX exchange traded in a range of 1141 to 1156 levels and ended the session at 1143.2 levels with a negative change of 0.76 per cent

Outlook:

Wheat may open up as the government is planning to increase the prices of wheat and rice sold under Public distribution system, but later may resume its downtrend its bearish fundamentals

Despite huge stocks and lack of adequate storage facility, the central government has decided to continue with ban on exports

With the National Food Security Bill that assures 25 kg of wheat or rice a month to Below Poverty Line people, the government would rather hold on to stocks than risk depletion and pay compensation to families, according to media reports

But the government will extend duty-free import of wheat till March 31 and step up efforts to enhance storage capacity and release more quantities for Above Poverty Line people under the Targeted Public Distribution System

Also the cabinet on Friday is scheduled to take up the controversial proposal for raising prices of wheat and rice sold through ration shops to Rs 11 a kg and Rs 15.37 a kg, respectively

Courtesy: Kedia Commodities

Exclusive and reserved reports now open to public

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook