Mumbai: India wheat futures traded a tad lower on Wednesday afternoon on hopes of higher supply in the domestic market, analysts said.
The most-active wheat contract for May delivery on National Commodity and Derivatives Exchange (NCDEX) was trading 0.155 lower at Rs1,166.00 per 100 kg at 2:52 pm, after hitting a low of Rs1,164.2 earlier.
“It may continue to go up after a brief correction due to hopes of higher supplies,” said Chowda Redddy, senior analyst with JRG Wealth Management, adding wheat may trade in the range of 1,145-1,185 for the week.
A panel of India’s federal ministers will take up the issue of freeing more wheat for states on Wednesday as part of efforts to trim bulging stocks, government sources said.
India’s state-run firms had procured 18.01 million tonnes of wheat in the 2009/10 marketing season, from 17.68 million tonnes last year.
India, the world’s second-biggest wheat producer, 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.
India’s corn futures edged higher on Wednesday afternoon on bargain buying after losing 2.3% in the last seven sessions.
The May corn contract was trading 0.80% higher at Rs881per 100 kg at 2:54 pm.
“It is up on some bargain hunting, but weak export demand on quality issues and higher production would continue to weigh on prices, range seen is Rs870-895,” said JRG’s Reddy.
Latest government estimates show a higher winter crop at 5.64 million tonnes, from 5.61 million tonnes last year.