March 13, 2012

India expects higher wheat exports

India is expected to witness high export demand on the back of higher food seed and industrial use of wheat by China, Algeria, South Korea and Uzbekistan.

According to latest USDA WASDE report the global wheat consumption has been raised 3.5 million tonnes and this is expected to offset the higher production of wheat in India and Australia. India, world's second largest producer wheat production has attained record production of 88.34 million tonnes in 2011-12. Meanwhile India's consumption is expected to be around 85 million tonnes. While according to a USDA report, India's wheat exports is expected to more than double to 1.5 million tonnes in the 2012-13 marketing year on account of back to back record harvest.

Meanwhile, Australia's wheat production for the current season is estimated to be around 29.5 million tonnes for 2011-12 according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

In India's National Commodity and Derivatives Exchange (NCDEX) the wheat for March delivery traded 0.575 to INR1,238 (US$24.84) on Monday at 11:15 IST. While on Inter Continental Exchange (ICE) the commodity for March delivery traded at 6386/8cents on March 9.