April 14, 2010

India's wheat futures show marginal decrease

India's wheat futures were slightly lower on Tuesday (Apr 13) afternoon on bumper harvest hopes, but purchases by government and private players limited losses, according to analysts.

The May wheat futures contract NWTK0 on National Commodity and Derivatives Exchange (NCDEX) was down at INR1,125 (US$25.3) per 100 kg, down 0.35% at 2:12.

"Private buyers like ITC and Cargill are lifting wheat from Uttar Pradesh due to comparatively lower prices in the state," Karvy Comtrade Ltd said in a broker note.

Food Corp of India said last week wheat purchases since April 1 stood at 996,000 tonnes, compared with 817,000 tonnes a year ago.

Analysts said a sharp upside is also not expected as supplies in the government granaries are swelling. India's wheat supplies on April 1 stood at 16.1 million tonnes against the target of four million tonnes, according to government sources.

India expects a strong harvest in 2010, with output likely to exceed demand for the fourth consecutive year. The country is estimated to produce about 82 million tonnes of wheat in 2009-10.