Sunday, April 18, 2010

India wheat futures seen higher on procurement

MUMBAI, April 19 (Reuters) - India wheat futures may trade slightly higher on Monday on purchases by the government and private players, analysts said.

The May wheat futures contract NWTK0 on National Commodity and Derivatives Exchange (NCDEX) closed at 1,139 rupees per 100 kg.

As on April 13, India has purchased 5.75 million tonnes of wheat, which was higher by 1.59 million tonnes over the same period the previous year, government data shows.


For a graphic on annual purchases of wheat by government, click on. (here)

Analysts said a sharp upside is not expected as stocks in the government granaries are swelling.

India's wheat stocks on April 1 stood at 16.1 million tonnes against the target of 4 million tonnes, government sources said. See [ID:nDEL002849]

India, the world's second-biggest wheat producer trailing China, expects a strong harvest in 2010, with output likely to exceed demand for the fourth consecutive year. See [ID:nSGE62S0GA]

India is estimated to produce about 82 million tonnes of wheat in 2009/10.

For a trend on India's wheat output See (here)


India's corn futures may tread higher supported by demand in the spot market, but higher output estimates could limit the upside, analysts said.

The April corn contract NMZJ0 closed at 887 rupees per 100 kg.

Latest government estimates show a higher winter crop at 5.64 million tonnes, from 5.61 million tonnes last year. See [ID:nSGE61B0BE]

(Reporting by Siddesh Mayenkar & Sourav Mishra; Editing by Prem Udayabhanu)