Indian wheat futures fell on Monday with fresh supplies arriving in the market, while sugar was up on speculative buying by investors who had sold the commodity at higher prices, traders said. Soyaoil was marginally down as supplies of mustard oil continued to exert pressure.
The April wheat contract at the National Commodities and Derivatives Exchange (NCDEX) lost 10.60 rupees to 788.80 rupees per 100 kg. The May contract at the Multi Commodity Exchange (MCX) fell 11.90 rupees to 805.
"The prices of wheat are dipping, but I expect them to fall much more next week when the bulk of the stocks arrive," said a north India-based trader. He said many traders were holding back and waiting to see supply positions in the first week of April.
Wheat prices had been mostly on a firm trend last week, with depleted government stocks coming under pressure, but fresh supplies of the new crop have reversed the price direction.
Sugar was sharply higher as traders who had sold the commodity at higher prices to speculate bought the sweetener. The April sugar contract at the MCX rose 34 rupees to 2,018, while April sugar at the NCDEX was 27 rupees higher at 1,968.
"The market fundamentals show that sugar should be weakening as the government is expected to release fresh stocks. But speculative buying by those who had sold at higher levels is pushing up prices," said a Mumbai-based trader.
Soyaoil prices dipped as stocks of mustard oil continued to pressure the commodity. The April soyaoil contract at the NCDEX was 1.65 rupees lower at 377.40 per 10 kg, while the MCX April contract fell 1.40 rupees to 376.85.