NEW DELHI, March 26 (Reuters) - Indian wheat futures are
likely to remain almost steady as trade is expected to be
subdued due to festivals and a long holiday this week.
But prices are likely to fall next week as arrivals pick up.
Wheat harvesting will gather momentum in April and farmers
are expected to produce 92.3 million tonnes, the sixth straight
year of output surpassing domestic demand of about 76 million
"Prices are likely to be steady as trade will be more or
less muted because of festivals and holidays this week," said
Chowda Reddy, a senior analyst at JRG Wealth Management.
As harvests roll in, the government will be struggling with
As part of its efforts to cut down unmanageable stocks, the
government earlier this month allowed private traders to export
up to 5 million tonnes of wheat from its overflowing warehouses,
doubling the quantity of shipments first permitted in July 2012.
But the government needs to create additional room for the
new season harvest and some traders believe it may allow more
India's wheat stocks at government warehouses on March 1
were at 27.1 million tonnes, more than three times the official
target of 8.2 million tonnes for the quarter ending March 31.
On Tuesday, the most-active wheat contract for April
delivery on the National Commodity and Derivatives
Exchange lost 0.63 percent at 1,417 rupees per 100 kg.
(Reporting by Mayank Bhardwaj; Editing by Bijoy Koyitty)