Wheat futures down on record output hopes

Wheat prices went down by 0.38 per cent to Rs 1,594 per quintal in futures trade today as speculators indulged in reducing their positions amid hopes of a record output this year.

Besides higher supplies in the physical market, reduced demand from flour mills also kept pressure on the wheat prices at futures trade here.

At the National Commodity and Derivatives Exchange, wheat for delivery in December fell by Rs 6, or 0.38 per cent, to Rs 1,594 per quintal, with an open interest of 10,170 lots.

Likewise, the wheat for delivery in December shed Rs 2, or 0.13 per cent, to Rs 1,585 per quintal, with an open interest of 13,710 lots.

Marketmen attributed the fall in wheat futures to increased supplies in the spot market amid reports that the country's wheat production is likely to touch a new record this year as improved soil moisture due to late monsoon rains and early winter would boost crop prospects.

Meanwhile, wheat production stood at a record 93.90 million tonnes in the 2011-12 crop year (July-June).

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