NEW DELHI, Nov 29 (Reuters) – Indian wheat futures are likely to rise next week as a price row between farmers and sugar mills threatens to delay cane harvesting, hitting wheat acreage.
Farmers harvest cane by October-November, paving the way for wheat planting. However, they are yet to harvest the crop this year.
Sugar mills normally start crushing around Nov. 1 but most are still idle this year as farmers hold out for higher cane prices and millers say they cannot afford to pay as domestic sugar prices are so low.
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“There is some apprehension that wheat sowing may get affected, as farmers have not harvested cane,” said Chowda Reddy, a senior analyst with Inditrade Derivatives and Commodities.
At 1000 GMT, the most-active wheat contract for December delivery was 0.18 percent up at 1,668 rupees ($26.73) per 100 kg on the National Commodity and Derivatives Exchange.
Brisk exports will also lend support to prices.
On Oct. 30 India cut the floor price for exports of wheat from government warehouses by 13 percent to boost stalled shipments from the world’s second-biggest producer of the grain.
The government has allowed an extra 2 million tonnes of exports after state-run traders sold 4.5 million tonnes of wheat for overseas sales. ($1 = 62.40 rupees)
