Wheat extends losses; export curbs to stay.

MUMBAI: India wheat futures extended the previous day's losses on Tuesday, weighed by a bumper crop and ample stocks and comments that export restrictions on the grain will continue, analysts said. September wheat on the National Commodity and Derivatives Exchange (NCDEX) was trading at 1,241.40 rupees per 100 kg, down 0.47 percent at 3:14 p.m. after hitting an intra-day low of 1,240 rupees. The contract had shed 0.13 percent in the previous session.

"Fundamentals like higher stocks and restrictions on exports are weighing. Wheat may take support at 1,225 rupees in coming days," said Chowda Reddy, senior analyst with JRG Wealth Management. India is not planning to lift a ban on exports of wheat and non-basmati rice as food inflation levels have made it necessary to prop up domestic availability, trade minister Anand Sharma said on Monday. Indian government estimated in mid-July India's wheat harvest at a record 80.71 million tonnes.

India has allowed the export of 300,000 tonnes of non-basmati rice and 200,000 tonnes of wheat to Bangladesh, a government statement said, as good rainfall and higher planting have boosted crop prospects.

India, which curbed grain exports in recent years to head off domestic price rises, made the announcement after two global suppliers cancelled deals to ship some 65,000 tonnes of Black Sea wheat to Bangladesh after Russia curbed grain exports.

Bangladesh, the world's fifth-biggest wheat importer, is expected to buy more than 3 million tonnes of the grain this year against 2.2 million tonnes the previous year. "One can sell wheat at 1,240-1,245 (rupees) for a target of 1,225," said Reddy.

Source : economictimes.indiatimes.com