Wheat cash and future market remained under extreme pressure on higher supply and continuous arrivals in states like Madhya Pradesh, Rajasthan, Uttar Pradesh, Bihar and Gujarat even during the lean season when generally crop arrivals drop significantly during June – July.

Prices of wheat ruled below MSP in major regions of the above mentioned states owing to inadequate procurement from regions where central and state agencies were having limited counters.
Wheat procurement activity by government agencies is expected to end on 30th June despite expectation of arrivals to continue in major trading centers. Month on month arrivals from different states stay significantly high during the fag end of the season when compared with 2010 primarily attributed to higher production projection as shown in the adjacent chart.

However, the intensity of arrivals might decline going ahead with the monsoon season but will stay relatively higher when compared with previous year.