May 10, 2010

India's wheat futures seen steady, corn weak

Wheat futures of India are seen steady on Monday (May 10) as pressure of a higher supply is paralleled by the local demand whereas corn futures may be lower, according to analysts.

The most active wheat contract NWTK0 last ended at INR1,148.6 (US$25.60) per 100 kilogramme, down 0.2%. The Indian government will provide 3 million tonnes of subsidised grain in aid for states in the next six months, Farm Minister Sharad Pawar told reporters last week.

India's wheat stocks on May 1 were at 30.8 million tonnes against the target of 4 million tonnes.

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

For corn, futures are seen weak on poor exports and a higher winter crop. The May corn contract NMZK0 last ended at INR881.5 (US$19.65) per 100 kilogramme, up 0.2%.

Latest government estimates show a higher winter crop at 5.64 million tonnes, from 5.61 million tonnes last year.