MUMBAI, June 16 (Reuters) - Indian wheat futures may open higher on Tuesday on talks India may soon allow export of the commodity and on short-covering after hitting lows in the previous session on soaring stocks, analysts said.
India is considering lifting a ban on rice and wheat exports, but will take a decision based on how much grain it requires for welfare schemes, the new trade secretary said on Monday.
"I am actively looking at that right now," trade secretary Rahul Khullar said when asked if the government was considering revoking the ban. See [nBMA003155]
However, soaring stocks of the grain may limit gains, analysts said.
India has purchased 24.41 million tonnes of wheat in 2008/09 marketing year beginning from April 1, sharply up from 22.06 million tonnes bought in the year ago period, an official with Food Corporation of India said late on Monday.
India is expected to snap up a record 25 million tonnes of wheat from farmers in the current season, up 11 percent from a year earlier, government officials said last week.
Most-active July futures contract NWTN9 on National Commodity and Derivatives Exchange hit fresh lows of 1,085 rupees per 100 kg in intraday trade on Monday. The futures ended at 1086.2 rupees, down 0.75 percent.
Overnight weakness in U.S wheat may also weigh on prices, analysts said.
July wheat on Chicago Board of trade ended down 1.6 percent at $5.75-¼ on Monday.
Source : REUTERS