Wheat falls in Kota, maize gains on ethanol demand

Weak sentiment, ample supplies, and seasonal slowdown weigh on prices across key mandis, limiting fresh buying interest

Prices of key foodgrains showed a mixed trend across major spot markets on Tuesday, with wheat declining in parts of Rajasthan, maize firming up in select southern markets, and rice remaining largely unchanged amid subdued trade activity. 

  Market participants cited weak sentiment, seasonal slowdown, and sector-specific demand as key drivers behind the price movement.

 Wheat prices in Kota, Rajasthan, fell by ₹25 to ₹2,350–₹2,400 per 100 kg, extending losses for a second straight session. Traders attributed the decline to weak market sentiment and a correction following last week’s sharp rally. 

 Bulk purchases by ITC had earlier lifted prices by ₹100–₹150 per 100 kg, but demand has since softened as millers and stockists remain adequately supplied. Lower-quality arrivals in the market further weighed on sentiment, with premium stocks largely being absorbed under government procurement. 

  In contrast, wheat prices in Indore remained steady at ₹2,600 per 100 kg, supported by balanced demand-supply dynamics and ongoing procurement operations. 

  Similarly, prices in Vashi, Navi Mumbai, held firm at ₹2,700 per 100 kg, as trading activity slowed due to seasonal factors, including the summer lull and wedding-related absences among traders. Maize prices displayed resilience, particularly in Davanagere, Karnataka, where they rose by ₹20 to ₹1,750–₹1,920 per 100 kg amid a sharp drop in arrivals and firm demand from the ethanol industry. 

 The uptick follows expectations of higher ethanol blending, after the Ministry of Road Transport and Highways proposed amendments to include fuels such as E85 and E100 under regulatory norms. 

   In Indore, maize prices stabilised at ₹2,100 per 100 kg after recent gains, with traders anticipating further upside if the policy gains approval. 

  Meanwhile, rice prices remained steady across key markets, including Vashi. Basmati varieties such as 1401 and 1121 were quoted at ₹9,700–₹9,800 and ₹10,000–₹10,200 per 100 kg, respectively. Traders said demand remained tepid following earlier stockpiling by exporters amid hopes of improved trade conditions in West Asia.                   

 — Informist