Indian wheat futures rose on Friday after the State Trading Corp (STC) issued a new import tender for 400,000 tonnes of the grain, a move which traders said showed the government was desperately short of wheat.
Soyoil futures were up on rumours the government could make changes to import duties, and on festival demand. Sugar fell slightly ahead of the monthly quota for sale in the open market. By 0620 GMT, the August wheat contract at the National Commodity and Derivatives Exchange (NCDEX) had risen by 4.40 rupees to 848.40 rupees per 100 kg.
"Wheat futures have risen as everybody has realised the new tender for 400,000 tonnes would not be able to ease the tight supplies any time soon," said a north India-based trader. The STC's latest tender stipulated the imported wheat must arrive between September and October at Indian ports. The grain will boost depleted buffer stocks that the government uses in lean months to ease pressure on local supplies and provide discounted grain to the poor.
Sugar futures fell ahead of the announcement of the monthly quota for August for sale by mills in the open market. The August sugar contract at the NCDEX fell by one rupee to 1,936 rupees. The same month contract on the MCX was down by 2 rupees to 1,936. The Indian government regulates the sale of sugar, a widely-consumed commodity, to keep a check on prices.
Soyoil futures rose on rumours of possible changes in import duties and on demand for next month's festivals, an Indore-based trader said. The August soy oil contract at the National Commodities and Derivatives Exchange (NCDEX) was up 4.05 rupees to 425.50 per 10 kg, while the same month contract at the Multi Commodity Exchange rose 4.55 rupees to 424.10.