Jul 30 2009 9:36AM
MUMBAI, July 30 (Reuters) - Indian wheat futures may trade slightly higher on Thursday on expectation of higher demand driven by a drop in rice sowing, though soaring stocks and an export ban may limit gains, analysts said.
The August futures contract on National Commodity and Derivatives Exchange ended almost steady at 1,118.6 rupees per 100 kg on Wednesday.
Farm Minister Sharad Pawar on Tuesday said rice sowing was likely to be affected more than other crops. He said rice sowing fell to 15.57 million hectares from 21.6 million hectares because of weak monsoon rains. See [ID:nBNG493693]
Lower rice output will increase the focus on wheat as an alternative grain resource for India, analysts said.
India will not export any wheat or rice through diplomatic arrangements, Pawar told reporters last week. See [ID:nDEB000803]
The government may sell a part of its bulging wheat stocks in the local market, Pawar said, which weighed on domestic prices.
Wheat stocks stood at 36 million tonnes as on July 1, more than double the required buffer norm of 17 million tonnes.
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