MUMBAI, June 29 (Reuters) - Indian wheat futures were a tad lower on Monday afternoon on soaring stocks, while hopes of exports of wheat products limited losses, analysts said.
Analysts said a below-average monsoon forecast may provide some support to prices of the commodity as it may reduce output of summer-sown food grains, increasing reliance on the winter-sown wheat.
"Delayed monsoon has supported wheat prices to some extent .... but it will remain subdued in the medium-term," said Kapil Gandhi of STCI Commodities.
"We can expect prices in the range of 1,075-1,125 rupees for July contract," he added.
Last week, Earth Sciences Minister Prithviraj Chavan said that the 2009 monsoon rainfall would be 93 percent of the long-term average, lower than an earlier forecast of 96 percent. See [ID:nBMB005637]
At 3:16 a.m, July futures contract NWTN9 on National Commodity and Derivatives Exchange was at 1,093 rupees per 100 kg, down 0.24 percent.
India has purchased 24.75 million tonnes of wheat in 2008/09 marketing year beginning April 1, sharply up from 22.26 million tonnes bought the year ago, as per latest data.
India is expected to buy a record 25 million tonnes of wheat from farmers in the current season, up 11 percent from a year earlier, government officials said on June 10. See [nDEL435822]
Soaring stocks may pave the way for export of the grain, analysts said.
According to local newspaper reports, the food ministry has approved a proposal for export of 0.65 million tonnes of wheat products.
India will look at lifting grain export curbs only after watching the progress of monsoon rains and the planting of summer-sown crops, its farm secretary said last week.
http://in.reuters.com/article/domesticNews/idINBOM41031120090629?sp=true
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