Indian wheat prices remain firm in the global market with no signs of an ease off in the Ukraine-Russia crisis. Delayed harvesting of wheat in Rajasthan and parts of Gujarat owing to cool weather is also attributed to the rise in prices to $285-290 a tonne for May delivery from a low of $265 a tonne in January.
However, in the volatile market industry sources say that private exporters are not keen on further forward contracts and adopt a wait and watch policy. Business conglomerates from ITC, Cargill, Noble, Louis Dreyfus, Glencore, Bagadiya Brothers and Emmsons have been in the market since January.
"If the crisis in Ukraine-Russia continues we may see bulk buyers flocking to India and domestic prices may go up due to sudden demand pull," said Tejinder Narang a grain analyst. Indian wheat prices are currently the cheapest compared to Australian, Russian and French.
Exporters state that wheat was sold on multi-origin basis and specification and Indian wheat could soon see arise in demand. "India wheat will be blended with high priced wheat from European Union for Middle East market. The contract size will fall to 20,000 tonne from 50,000-60,000 tonne as being done earlier due to uncertain global and domestic market," said a global player in wheat trade.
According to some exporters the buyers were ready to buy wheat at even $290 a tonne, but sellers were reluctant in hopes of prices to firm further amid reports of Rajasthan government likely to give bonus to wheat farmers this season. "I have been able to only buy 500 tonne wheat from around Rajkot in Gujarat as supplies have been low," said another global grains and oil seeds company official.
Since January this year, exporters have been doing forward contracts for March-April-May delivery ahead of the wheat crop arrival from Russia, Ukraine, America and Australia. "The market is taking a breather after 3-4 week of rally. We feel that it is a good time for market to sell and not hold as the rally might not stay for long," said BK Anand, head, grain supply chain, Cargill India.
Source:- economictimes.indiatimes.com
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