MUMBAI, March 19 (Reuters) - India wheat futures fell to near contract lows on Friday after the farm minister said India had no immediate plans to export wheat, sparking concerns of subdued demand amid a bumper crop, analysts said.
Most-active April wheat contract NWTJ0 on National Commodity and Derivatives Exchange (NCDEX) ended 0.65 percent down at 1,135.8 rupees per 100 kg nearing contract low of 1,126.6 rupees.
Farm Minister Sharad Pawar on Monday said India has no immediate plan to lift ban on wheat exports.
Analysts said the government procurement, which begins in April will give a clear direction to prices.
"We believe that clues for price direction would depend on farmers selling in the markets in the coming weeks," Sharekhan Commodities said in a broker note.
Earlier, Indian wheat traders were expecting the world's second biggest grains producer to export between 2-3 million tonnes of wheat this year to get rid of swelling stocks ahead of the new procurement.
India's wheat stocks as at March 1 were at 18.4 million tonnes against a target of 8.2 million tonnes, government sources said on Monday.
The country has raised its wheat crop estimate for 2009/10 crop year a record 82 million tonnes in February on favourable weather and higher acreage.
India's corn futures fell on increasing arrivals of the winter crop and a drop in exports, analysts said.
The April corn contract NMZJ0 ended down 0.06 percent at 888 rupees per 100 kg.
Latest government estimates show a higher winter crop at 5.64 million tonnes over 5.61 million tonnes last year.
India's corn exports could drop by 60 percent in the year to September due to crop quality issues, traders and industry officials said.
Source : REUTERS