MUMBAI, Aug 6 (Reuters) - Indian wheat futures are seen firm on Thursday on hopes 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 NWTQ9 on National Commodity and Derivatives Exchange last ended at 1,129.8 rupees per 100 kg, up 0.32 percent.
As on July 30, paddy sowing area fell to 19.13 million hectares from 25.68 million hectares because of weak monsoon rains.
Lower rice acreage indicates lower output of the grain, which may increase the focus on wheat as an alternative grain resource for India, analysts said.
India last month banned export of any wheat or rice through diplomatic arrangements.
The government may sell a part of its bulging wheat stocks in the local market to control domestic prices.
Wheat stocks stood at 36 million tonnes as on July 1, more than double the required buffer norm of 17 million tonnes.
Source : REUTERS