OUTLOOK-India wheat futures seen extending losses

MUMBAI, July 30 (Reuters) - India's wheat futures are likely to fall this week on extended profit taking and fears that the government might intervene to control rising food prices.

At 01048 GMT, the August wheat contract on the National Commodity and Derivatives Exchange (NCDEX) was trading up 1.21 percent at 1,424 rupees per 100 kg.

The contract, which rose about 21 percent since the beginning of this month to hit a high of 1,470 rupees on July 21, fell 3.1 percent in the previous week.

" There is not much movement in wheat prices though a surge in farm commodities due to patchy rains supported by the recent rally in global prices pushed it up. Now, traders fear that government might take some steps to control food inflation," said Faiyaz Hudani, analyst with Kotak Commodity Services.

Indian ministers will meet on Tuesday to discuss banning futures of some farm commodities to curb price rise, government sources said.

Wheat prices are unlikely to touch previous high of 1,470 rupees and could fall to 1,380 rupees this week, Hudani said.

Wheat prices in India rose on hopes of higher exports following the recent rally in global prices.

Chicago Board of Trade September wheat futures rose 2.1 percent to $9.17-1/4 a bushel on Monday on continued concern about drought damage to grain crops in the United States and the Black Sea region, especially Russia.

India has kicked off wheat exports from government stocks with an offer of 240,000 tonnes, which would be the first such sale in at least four years, as it tries to makes space in overflowing warehouses for the next harvest.

On July 1, government stocks were at 49.8 million tonnes, much higher than the target of 17.1 million for the current quarter.

(Reporting by Deepak Sharma; Editing by Anupama Dwivedi)