MUMBAI, Aug 10 (Reuters) - Indian wheat futures may rise on Monday on hopes of higher demand driven by a drop in rice sowing due to poor monsoon rains, though soaring stocks and an export ban may limit gains, analysts said.
India's monsoon rains were 64 percent below normal in the week to Aug. 5, displaying two consecutive weeks of dull phase in the annual rain cycle, the weather office said.
As per latest data, paddy sowing area fell to 19.13 million hectares from 25.68 million hectares because of weak monsoon rains.
Lower rice acreage indicates lower output of the grain, which may increase the focus on wheat as an alternative grain resource for India, analysts said.
The August futures contract NWTQ9 on National Commodity and Derivatives Exchange last ended at 1,152.2 rupees per 100 kg, down 0.19 percent.
India last month banned export of any wheat or rice through diplomatic arrangements.
The government may sell a part of its bulging wheat stocks in the local market to control domestic prices.
Wheat stocks stood at 32.92 million tonnes as on July 1, almost double the required buffer norm of 17 million tonnes.
Source : REUTERS