India wheat futures seen lower on supplies.

 MUMBAI, June 30 (Reuters) - Indian wheat futures are seen lower on Tuesday on soaring stocks, while hopes of exports of wheat products may limit losses, analysts said.

Analysts said a below-average monsoon forecast may provide some support to prices as it may reduce output of summer-sown food grains, increasing reliance on the winter-sown wheat.

Earth Sciences Minister Prithviraj Chavan said last week the 2009 monsoon rainfall would be 93 percent of the long-term average, lower than an earlier forecast of 96 percent.

The July futures contract NWTN9 on National Commodity and Derivatives Exchange last ended at 1,090.8 rupees per 100 kg, down 0.43 percent.

India purchased 24.75 million tonnes of wheat in 2008/09 marketing year beginning April 1, sharply up from 22.26 million tonnes bought the year ago, as per the latest data available.

India is expected to buy a record 25 million tonnes of wheat from farmers in the current season, up 11 percent from a year earlier, government officials said on June 10.

Soaring stocks may pave the way for export of the grain, analysts said.

According to local newspaper reports, the food ministry has approved a proposal for export of 0.65 million tonnes of wheat products.

India will look at lifting grain export curbs only after watching the progress of monsoon rains and the planting of summer-sown crops, its farm secretary said last week.

Source : REUTERS