April 15, 2010

Indian wheat futures rise on purchases; corn slips

India's wheat futures were reported higher on Thursday (Apr 15) afternoon due to government and private players' purchases, analysts said.

The May wheat futures contract NWTK0 on National Commodity and Derivatives Exchange (NCDEX) was at INR1,131 (US$25.46) per 100 kilogrammes, up 0.34% at 2:43 p.m.

"Buying by government is very good and private players are active in Uttar Pradesh and Haryana," said an analyst with a Hyderabad-based brokerage.

As of April 13, India had purchased 5.75 million tonnes of wheat, higher by 1.59 million tonnes on-year. Analysts said a sharp rise is not expected due to bumper stocks in granaries.

On April 1, India's wheat stood at 16.1 million tonnes against the target of 4 million tonnes, the government said.

India places as the world's second-biggest wheat producer after China. It expects a strong harvest this year, with output likely to exceed demand for the fourth consecutive year. In 2009/10, the country was estimated to produce about 82 million tonnes of wheat.