Wheat steady; export hopes support.

MUMBAI: India's wheat futures were steady on Thursday afternoon as positive sentiment from hope the government may allow exports of the food grain later this year offset the negative sentiment, analysts said.

Expectation of a bumper output and the government's plan to release additional stock in the domestic market have been weighing on the prices for last few sessions.

September wheat on the National Commodity and Derivatives Exchange (NCDEX) was down 0.10 percent at 1,217 rupees per 100 kg at 12:52 p.m.

India's latest farm department estimate showed the country's wheat harvest would hit a record 80.71 million tonnes this year.

"We don't expect any strong price movement unless the government allows large exports," said an executive with a transnational grains trader.

Traders expect India to allow higher exports of the grain later in the year after assessing the output and prices.

India, which curbed grain exports in recent years to head off domestic price rises, made some concessions to export to neighbouring Bangladesh recently after some global suppliers cancelled deals to ship Black Sea wheat since Russia curbed grain exports.
The Indian government will free 2.5 million tonnes of grains from its stocks for sale to states, Farm Minister Sharad Pawar said last week.

Source : economictimes.indiatimes.com