February 9, 2012

Indian wheat futures may climb on higher demand

The wheat futures of India are likely to go higher as demand shows improvement whereas Indonesia's decision to import more wheat this year might also boost prices, analysts said.

Prices could hit INR1,260 (US$25.45) per 100 kg in India despite a lower close overnight at CBOT they added. MCX wheat for May delivery was at INR1,258.9 (US$25.43) per 100 kg at close Tuesday (Feb 7).

The country expects a record wheat harvest of 86 million tonnes in 2012.

Global prices for wheat are to advance sharply this month on recent cold snap potential wheat damage in the Black Sea region analysts said.

India is likely to bid for the Indonesian order after the government allowed export of two million tonnes of wheat after a gap of four years.