India wheat gains on pick up in spot buys.

Prices of wheat rose in the domestic market. Prices of wheat in the key wholesale markets of Bhopal and Sehore edged higher due to pick up in demand from flour mills. In Bhopal, a key market for the grain in Madhya Pradesh, wheat was sold at 1,950-2,065 rupees per 100 kg, up 20 rupees. Fall in sowing is also supporting prices.

The area under wheat, a key rabi food grain, was around 4.9% lower on year at 5.16 mln ha.

In Delhi, mill quality wheat was steady at 2,050-2,060 rupees per 100 kg. Demand for mill-quality wheat from local millers is picking pace gradually, but that for premium quality grain is more. Wheat stocks in wholesale markets are less due to lean season.

With supplies being limited, bulk buyers are buying from weekly auctions by Food Corp of India. However, a sharp rise in wheat prices was checked due to ample stock in the government’s central pool. The government had 33.1 mln tn of wheat in its central pool as of Nov 1, up from 23.9 mln tn in the year-ago period.