Wheat slips sharply, maize mixed as demand, supplies diverge

Trade sentiment stays cautious amid steady arrivals, export uncertainty, ethanol push shaping grain markets dynamics

Wheat and maize prices displayed divergent trends across key spot markets on Monday, reflecting shifting demand patterns and evolving supply dynamics, while rice prices remained largely steady amid global uncertainty. The movement in grain markets highlighted a cautious undertone, with traders closely monitoring both domestic fundamentals and international developments.

 In Kota, Rajasthan, wheat prices declined by ₹20–₹30 to ₹2,300–₹2,425 per 100 kg, primarily due to weak demand from processors and stockists. Market participants indicated that despite steady arrivals of around 70,000 bags, buying interest has slowed significantly. Ample availability of the new rabi crop, coupled with sufficient carry-over stocks from the previous season, has reduced urgency among bulk buyers. 

 Millers continue to procure on a need basis, but the lack of downstream demand has limited upward price movement. As a result, sentiment in the wheat market remains subdued, with prices expected to stay range-bound to weak in the near term. 

  In contrast, wheat prices in Indore and Vashi held steady at ₹2,570 and ₹2,600 per 100 kg respectively, supported by ongoing procurement operations. The government’s decision to raise procurement targets in Madhya Pradesh has not yet translated into higher open market prices, as supply levels remain comfortable. Maize markets presented a mixed picture. Prices in Indore were unchanged at ₹1,965 per 100 kg, but the outlook remains firm due to expectations of lower acreage in the upcoming kharif season.

Concerns over fertiliser availability, linked to geopolitical tensions in West Asia and disruptions in the Strait of Hormuz, are likely to influence planting decisions. Given that maize cultivation is relatively fertiliser-intensive, any supply constraint could impact output and support prices in the coming months. Meanwhile, in Davanagere, maize prices rose ₹50 to ₹1,750–₹1,900 per 100 kg, driven by stronger demand. The government’s push for higher ethanol blending has emerged as a key demand driver, encouraging increased offtake from industrial buyers. Arrivals also surged, indicating active participation in the market. 

 Rice prices remained steady in Vashi, with basmati varieties holding firm. The market continues to await clearer cues from West Asia, a crucial export destination, before establishing a definitive trend.   

—Informist