Wheat futures are likely to remain buoyant in the near term due to due to hike in open sale price of wheat by Food Corporation of India (FCI) along with weak sowing progress of coarse cereals in major producing states.
The government procurement agency , FCI has increased the wheat's open sale price by Rs 100 per quintal from the last night due to sturdy domestic prices. As per official sources, the prices of wheat are being sold to bulk consumers by 10 % higher to Rs 1,285 a quintal.
Moreover, fragile sowing progress of coarse cereals such as bajra , ragi and jawar might also divert the feed demand towards wheat market. As per latest release from Ministry of Agriculture , the area under coarse cereals like bajra, ragi and jowar is reduced by 23 % at 11.74 million hectare on 27th July as against 15.18 million hectare in the year-ago period.
Consequently, the NCDEX wheat futures spurted by almost Rs 23 per quintal in the last trading at Rs 1433 per quintal. Technically, prices are likely to gather some buying around Rs 1410-1415 per quintal with the upside target of Rs 1450-1455 per quintal in the near term.
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