MUMBAI, June 25 (Reuters) - Indian wheat futures may trade higher on Thursday on talks of exports of wheat products, however, soaring stocks may trim gains, analysts said.
Analysts said a below average monsoon forecast may support the commodity prices as it may reduce output of summer sown food grains increasing reliance on the winter sown wheat.
Earth Sciences Minister Prithviraj Chavan told a news conference on Wednesday that the 2009 monsoon rainfall would be 93 percent of the long-term average, lower than an earlier forecast of 96 percent.
Most-active July futures contract NWTN9 on National Commodity and Derivatives Exchange last ended at 1,093 rupees, up one percent.
India has so far purchased 24.67 million tonnes of wheat in 2008/09 marketing year beginning April 1, sharply up from 22.25 million tonnes bought the year ago, a Food Corp of India (FCI) official said on Wednesday.
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 and falling prices may pave the way for export of the grain, analysts said.
According to reports in local newspapers, India's food ministry has approved a proposal for export of 0.65 million tonnes of wheat products.
The widely watched wholesale price index fell 1.61 percent in the 12 months to June 6, the government said, sharply below the previous week's rise of 0.13 percent.
Source : REUTERS