NEW DELHI, Feb 26 (Reuters) - India's wheat futures are
likely to rise this week due to brisk export deals but prices
are expected to ease in March and April when the new season
The government is likely to allow extra exports from its
warehouses after permitting 4.5 million tonnes in 2012 to cut
stocks at brimming silos due to bumper harvests since 2007.
Private exporters are also sealing export contracts.
Traders have jumped in to take advantage of attractive
global prices by sealing deals to export up to 750,000 tonnes of
the new season wheat, kicking off overseas sales for the harvest
to start next month.
But yet another bumper harvest is likely to keep stocks
substantially high. Left with no other option, the government
will have to stock a large quantity in open fields.
"The March contract will trade higher due to the export
deals and lack of delivery pressure for the March contract but
going forward prices will fall, especially in March and April,"
said Chowda Reddy, a senior analyst at JRG Wealth Management.
On Tuesday, the most-active wheat contract for March
delivery on the National Commodity and Derivatives
Exchange closed down 0.39 percent at 1,522 rupees per 100 kg.
India's wheat output could slip about 3 percent in 2013 from
a record 95 million tonnes in the previous year. Output will
still be higher than an annual consumption of about 76 million
India's wheat stocks at government warehouses on Feb. 1 were
30.8 million tonnes, nearly four times the official target of
8.2 million tonnes for the quarter ending March 31.
(Reporting by Mayank Bhardwaj; Editing by Anand Basu)