Wheat is a cereal grain that belongs to the grass family of the genus ‘Triticum’. A dry, one seeded fruit named kernel is obtained from this spiky grass like grain, which is ground to make flour and is consumed throughout the world as one of the most important staple food. It is the second largest cereal grain consumed on earth. Wheat is important especially for making breads and other bakery products as it has got the maximum number of glutens as compared to any other grain. This crop is also grown as a forage crop for the livestock.
Wheat requires a cooler weather and a good level of moisture in the early plantation period and once the grain is formed, it needs a warmer weather to dry up. That is why the best-suited climate needed for the wheat crop to prosper is the temperate climate. In India, wheat is cultivated as a Rabi crop and it is planted in the month of October. It is harvested in the months of April and May.
Scenario
The world production of wheat figures over 680 million tons (2009-10 figures) annually. The largest producer of wheat in the world is the European Union followed by China, India and United States of America. These four producers contribute to around 60% of the total production. The consumption of wheat in the world is a huge 650 million tons (2009-10 figures) but is successfully kept satisfied with an equally high production figures
India produces around 75-80 million tons of wheat every year. India also stands at the top in the world in terms of area covered in production of wheat. Uttar Pradesh is the leading producer state in India followed by Punjab and Haryana. Wheat occupies a major share of 35% production in the total production of crops cultivated and 65% of total cropped area in the country. This share in production and area covered of the crop has increased since independence and is also constantly rising. The yield of wheat in kilograms per hectare has also risen significantly from 522 kg/ha in 1950/51 to 1620kg/ha in 1998/99.
Indian wheat is generally medium hard bread wheat. It is a staple food of this country. The demand-supply flows with in the country are largely interfered by the government of the country so as to make sure that the grain supplies be stable and prices do not get affected.
Wheat Future Prospects
Wheat is a stable crop in many countries and hence its consumption is directly proportional to the population growth. Consumption has been constantly increasing during the last 10 years with the increase in population, and alarmingly, the consumption is prepared to shoot up further and is expected to reach up to 775 million tons in 2020.
Factor Influencing Prices
NCDEX Wheat Future
NCDEX wheat futures provide a hedging platform to those who are natural traders of the commodity. Even an arbitrager can trade using strategies like cash and carry and calendar spread . Speculators can take directional view on future prices and accordingly take position in Wheat futures.
Wheat requires a cooler weather and a good level of moisture in the early plantation period and once the grain is formed, it needs a warmer weather to dry up. That is why the best-suited climate needed for the wheat crop to prosper is the temperate climate. In India, wheat is cultivated as a Rabi crop and it is planted in the month of October. It is harvested in the months of April and May.
Scenario
The world production of wheat figures over 680 million tons (2009-10 figures) annually. The largest producer of wheat in the world is the European Union followed by China, India and United States of America. These four producers contribute to around 60% of the total production. The consumption of wheat in the world is a huge 650 million tons (2009-10 figures) but is successfully kept satisfied with an equally high production figures
India produces around 75-80 million tons of wheat every year. India also stands at the top in the world in terms of area covered in production of wheat. Uttar Pradesh is the leading producer state in India followed by Punjab and Haryana. Wheat occupies a major share of 35% production in the total production of crops cultivated and 65% of total cropped area in the country. This share in production and area covered of the crop has increased since independence and is also constantly rising. The yield of wheat in kilograms per hectare has also risen significantly from 522 kg/ha in 1950/51 to 1620kg/ha in 1998/99.
Indian wheat is generally medium hard bread wheat. It is a staple food of this country. The demand-supply flows with in the country are largely interfered by the government of the country so as to make sure that the grain supplies be stable and prices do not get affected.
Wheat Future Prospects
Wheat is a stable crop in many countries and hence its consumption is directly proportional to the population growth. Consumption has been constantly increasing during the last 10 years with the increase in population, and alarmingly, the consumption is prepared to shoot up further and is expected to reach up to 775 million tons in 2020.
Factor Influencing Prices
- Weather conditions
- Government policies and regulations
- Prices fluctuations of the competitive and substitute products
- Season of harvesting and peak season
- Technological improvements
- Crop size
- World demand for wheat
NCDEX Wheat Future
NCDEX wheat futures provide a hedging platform to those who are natural traders of the commodity. Even an arbitrager can trade using strategies like cash and carry and calendar spread . Speculators can take directional view on future prices and accordingly take position in Wheat futures.
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