Indian wheat futures rose on Monday with a supply shortage in northern states pushing up prices, while sugar futures fell in thin trade. Soyaoil futures were marginally up on tight supplies.
The November wheat contract on the National Commodity and Derivatives Exchange (NCDEX) was up 18.40 rupees at 1,140.80, while the December wheat contract rose 17.40 rupees to 1,151.20. "Most of the imports coming in are to southern ports and hardly any is trickling into the northern region. This imbalance is impacting the prices," said a Mumbai-based commodity trader.
India has imported wheat this year for the first time in six years after a poor domestic crop. Sugar future prices fell amid thin trading as most traders held back transactions ahead of the crushing season. Traders said though some mills had started crushing operations, it would take another couple of weeks before all the units had started.
"We will then get a fair idea of how much sugar will be available for trading. Unless you have a clear picture, few would like to venture," said an Ahmedabad-based trader. Sugar futures on the Multi Commodity Exchange (MCX) for the November contract fell 2 rupees to 1,652, while the December contract was down 59 rupees at 1,611.
Soyaoil futures were up on tight supplies. The November soyaoil contract on the Multi Commodity Exchange was 2.10 rupees higher at 438.10 rupees per 10 kg, while the December contract was 1.80 rupees up at 452.90.