Wheat futures extend uptrend on demand from flour mills

CHENNAI, AUG 28:



Wheat futures continued to surge on demand from flour mills starved of stocks and short-supply.



They also moved up on cues from the global market where speculation that Russia and other Black Sea nations could curb exports.



In the domestic market, the voice of flour mills, particularly in South India, complaining lack of supplies has got shriller.



Mills say that they did not buy wheat during peak arrivals during April-June since the Centre had assured them of providing wheat through the open market sale scheme.



Though the scheme began in July with bulk users being offered wheat at Rs 1,175, it was subsequently suspended. The Centre was reportedly toying of raising the prices but nothing has happened yet.



This has left mills high and dry and they are fast running out of inventories that they need to produce for the festival season that extends till November.



The Centre has procured over 38 million tonnes of the record 93.9 mt produced this year. Exporters are reported to have bought significant quantities, while growers are also holding back their produce hoping for higher prices.



On the NCDEX on Tuesday, wheat for September delivery was quoted at Rs 1,599 a quintal, up Rs 14 over Monday's close. October and November contracts were up at Rs 1,582 and Rs 1,592, while December futures ruled at Rs 1,602.



In the spot market at New Delhi, considered the benchmark, the prices were higher at Rs 1,625.
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