Indian wheat futures fall on increased govt supply

Last Updated: Tue, Nov 22, 2016 18:42 hrs
A farmer standing on a plastic drum winnows wheat in a field on the outskirts of Ahmedabad, India

Indian wheat futures fell as much as 4 percent on Tuesday and touched the lower circuit limit, triggering a restriction on bidding for the commodity below that level for the day.

The December wheat contract, which hit the lower circuit around the day's close, fell as the government increased supply in the open market by in a bid to control the prices at which the commodity is sold to consumers, a trader from central India said on Tuesday.

The Indian government last week decided to raise the price at which it will buy new-season wheat from domestic farmers in 2017, a decision intended to boost wheat output.

The December wheat contract settled 3.5 percent lower at 2,043 rupees ($29.94) per 100 kg.

SOYBEAN, SOYOIL

** The December soybean contract rose 0.3 percent to 3,088 rupees per 100 kg. Trading was mostly range-bound based on overseas sentiment, a trader said.

** The December soyoil futures on the National Commodity & Derivatives Exchange (NCDEX) were down 0.3 percent at 688.15 rupees per 10 kg at 1150 GMT, due to lower demand.

SUGAR

* The December sugar contract was set to close lower for the third consecutive day, and was down about 0.2 percent to 3,453 rupees per 100 kg.

RAPESEED

* The December rapeseed contract rose 1.8 percent to 4,708 rupees per 100 kg due to lower demand.

CORN

* December corn futures fell 1.3 percent to close at 1,400 rupees per 100 kg.

($1 = 68.2455 Indian rupees)



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