MUMBAI, Feb 11 (Reuters) - India's wheat futures ended higher on Thursday afternoon as India allowed export of wheat to neighbour Nepal on bumper crop expectations, analysts said.
Analysts said the exports to Nepal also indicate India may open the exports to private traders. For a related analysis
March wheat contract NWTH0 ended up 0.53 percent at 1,289.6 rupees per 100 kg on Thursday.
A state-run firm would soon be allowed to export an additional 200,000 tonnes of the grain to Nepal, government sources told Reuters on Wednesday.
The government earlier allowed exports of 50,000 tonnes to neighbouring Nepal late Tuesday.
The world's second-biggest producer of wheat banned overseas sales of the grain in February 2007, but lifted the restriction last July for a few days, but no export deals were struck.
India is likely to produce a record 82.58 million tonnes of wheat in 2009/10, a 2 million tonnes jump from last year, boosted by favourable weather and increased acreage, a top official told Reuters on Wednesday.
According to government data, wheat acreage stood at 27.76 million hectares as on Feb. 4, up from 27.59 million hectares during the same period last year.
For more stories on India's wheat harvest and export prospects see.
CORN:
India corn futures were higher for a second session on continued support from starch makers' demand in Gujarat but an estimated drop in exports limited gains, analysts said.
The March corn contract NMZH0 ended up 1.27 percent at 912.5 rupees per 100 kg on Thursday.
"Starchmakers consume about 10 pct of the total production ...they see these prices are good and are buying," said an analyst with a Delhi-based brokerage.
Corn prices have fallen about a fifth in Dec-Jan as exports dropped. Prices are around 840 rupees in Ratlam, Madhya Pradesh, from where the starchmakers are buying.
Analysts said despite the sporadic spurt in demand from starchmakers, overall trend remains weak as exports will be lower this marketing year.
India's corn exports could drop by 60 percent in the year to September due to a poor domestic crop, quality issues, lower global prices and good crop prospects overseas, traders and industry officials said on Thursday.
Source : REUTERS