Wheat almost steady; crop, stocks weigh.

MUMBAI: India's wheat futures were almost steady on Thursday afternoon as pressure from a bumper crop and ample stocks outweighed expectations of exports to Asian markets, analysts said. Traders are widely expecting India to allow exports of the grain, given a record harvest and the shortage in other countries after a drought forced Russia to halt shipments limited losses, they added.

September wheat on the National Commodity and Derivatives Exchange (NCDEX) was at 1,250.8 rupees per 100 kg, down 0.02 percent at 1:41 p.m. Indian government estimated in mid-July India's wheat harvest at a record 80.71 million tonnes.

"Government should allow wheat exports for sure but they may take some more time to decide," said a analyst with Agriwatch. India could easily sell around 2 million to 3 million tonnes of current wheat stocks of roughly 32 million with little impact on domestic prices, but policy makers will be even more careful before liquidating their high-value wheat stocks.

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. Trade expects India to allow up to 3 million tonnes of exports by end of December to manage stocks.

Source : economictimes.indiatimes.com