India wheat seen steady on supplies, output woes

Indian wheat futures are seen steady on Friday (September 4) as projections the government will sell stocks from its granaries and import food may offset concerns about lower grain output, analysts said.

The September futures contract NWTU9 on National Commodity and Derivatives Exchange last ended at 1,159.2 rupees per 100 kg, up 0.24 percent.

Last week, the Indian finance minister said there are possibilities of importing food items to increase supplies and that he expects India's rice output to drop by 15-20 percent in 2009-10.

The government plans to release 3 million tonnes of wheat in the open market, according to media reports.

Wheat stocks stood at 31.62 million tonnes as on July 31. At the beginning of the new marketing year in April 2010, stocks are estimated at 10 million tonnes.

Analysts expect deficient monsoon rains could impact winter-sown wheat crop.