March 10, 2010

India wheat futures up on bargain-buying


India's wheat futures were slightly higher on Wednesday (Mar 10) on bargain-buying after losing about 3% in the past two sessions.

However, bumper output hopes and swelling stocks limited gains, analysts said.

India raised its wheat crop estimate to a record 82 million tonnes in February on favourable weather and higher acreage.

The March wheat contract NWTH0 was at INR1,222 (US$27) per 100 kg, up 0.15% at 2:31 p.m.

"Higher stocks in government's warehouses are also putting pressure on prices," said an analyst with SMC Comtrade Ltd.

India's wheat stocks as at March 1 were at 18.4 million tonnes against a target of 8.2 million tonnes, government sources said on Monday (Mar 8). However, if government allows exports of wheat to get rid of burgeoning food stock, prices may get some support, traders said.

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