MUMBAI, March 16 (Reuters) - India wheat futures ended higher on Tuesday on hopes the country may allow exports of the commodity soon and as an electronic auction of the commodity failed cheer the market, analysts said.
The futures may trade higher for another session, analysts said.
The most-active March wheat NWTH0 on the National Commodity and Derivatives Exchange (NCDEX) ended at 1,266.6 rupees per 100 kg, up 0.52 percent.
"The e-auction price is around 1,250 rupees per 100 kg in Delhi, which is almost the same as market prices ... this will not attract many buyers," said an official with the Food Corp of India.
Analysts said the auction could have pressurised physical market prices a month ago when prices were closer to 1,350 rupees per 100 kg.
Food Corp of India (FCI) has began electronic auctions of wheat from March 16, using National Spot Exchange Ltd (NSEL) platform under the open market sales scheme, the company said in a statement on Monday.
The traders are hopeful government decide significant exports to get rid of excess stocks, ahead of new crop arrival that begins early April.
India may consider allowing wheat exports after a meeting of the policymakers, Farm Minister Sharad Pawar said in the first week of March.
India banned exports in 2007, but has allowed some exports through diplomatic route since then.
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 to a record 82 million tonnes in February on favourable weather and higher acreage.
CORN:
India's corn futures ended steady as some demand for the new crop outweighed a higher winter crop and a drop in exports, analysts said.
However, the outlook is expected to remain weak, they added.
The April corn contract NMZJ0 ended unchanged at 887.5 rupees per 100 kg.
"Some stockists are buying the fresh crop to meet export requirement later," said an analyst with a Delhi-based brokerage.
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