Indian wheat futures fell for the third day on Friday after the government banned new contracts to tame rising prices. Soyaoil and sugar dropped on good supplies. At 0840 GMT, March wheat futures on the National Commodity and Derivatives Exchange were 7 rupees down at 967 rupees per 100 kg, while April contract fell 1 rupee to 881.20.
"We do not see any rise in wheat futures after the FMC clamp down," an analyst with a Mumbai-based brokerage said, referring to the Forward Markets Commission which said on Wednesday no new contracts would be launched in wheat and rice. The move came after some key allies of the ruling coalition government blamed futures trading for spiralling prices.
Soyaoil was up as supplies have been consistent, the analyst said. "Domestic trade has been quiet since Wednesday when the government did not tinker with the primary customs duty and removed 4 percent additional duty," the analyst said. The March soyaoil contract on the Multi Commodity Exchange was down 3.10 rupees at 439.30 per 10 kg, while the April contract fell 3.85 rupees to 447.90. The analyst said sugar was down as supplies have been ample. The March sugar futures on the NCDEX were down 5 rupees at 1,501 per 100 kg.
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