Indian wheat futures were firm on Thursday on tight supplies and high prices quoted by bidders in the government's latest import tender, traders said. Soyaoil futures dipped as heavy rains over a key-growing region eased, while sugar fell on offloading of stocks by mills.
The September wheat contract on the National Commodity and Derivatives Exchange (NCDEX) was up 2.80 rupees at 968 per 100 kg. The October contracts rose 3.80 rupees to 989. "There is still a shortage of good quality wheat despite imports," said an Indoor-based trader. Following a poor crop in March, India began buying wheat for the first time in six years to augment stocks with the state-run Food Corp of India, which handles the public distribution system.
Traders said international firms had bid high prices for State Trading Corporation's latest wheat import tender for 1.67 million tonnes on Tuesday, compared with previous four tenders.
The lowest quote at the tender was $223.75 per tonne cost and freight, compared with $178.75 the corporation contracted wheat in its first tender in February.
Soyaoil futures dipped as fears of crop damage faded after heavy rains in central India eased off. The September Seoul contract on the Multi Commodity Exchange fell 1.20 rupees to 429 per 10 kg, while the October contract was down 1.05 rupees at 428.35. Sugar futures dropped as mills offloaded stocks on expectation of good supplies in the new crushing season that begins in October.
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