India wheat futures almost steady.

MUMBAI: India's wheat futures were trading in a narrow range on Tuesday afternoon as hope the government could allow exports of the food grain outweighed downward pressure on prices, analysts said. Traders expect India to allow export of large amount of the grain later in the year after assessing the paddy output and keeping prices under control. Prices have been declining over the last few sessions due to bumper crop and the government's plan to release additional stocks in the domestic market, analysts said.

"We understand that export is going to happen...there is enough stock for domestic needs and export," said a Mumbai-based executive with a transnational grains trader. India, which curbed grain exports in recent years to head off domestic price rises, made some concessions to export to neighbouring Bangladesh recently after some global suppliers cancelled deals to ship Black Sea wheat since Russia curbed grain exports. The government had estimated in mid-July the country's wheat harvest would hit a record 80.71 million tonnes this year.

The Indian government will free 2.5 million tonnes of grains from its stocks for sale to states, Farm Minister Sharad Pawar said last week. September wheat on the National Commodity and Derivatives Exchange (NCDEX) was at 1,222 rupees, down 0.13 percent at 2:04 p.m. Karvy Comtrade Ltd expects September contract to move sideways with resistance at 1,227 rupees and support at 1,221 rupees.

Source : economictimes.indiatimes.com