India wheat ends slightly higher on demand

MUMBAI, Nov 19 (Reuters) - India wheat futures ended slightly higher on Thursday on the back of continuing firm domestic demand but hopes of better output kept the upside limited, analysts said.

The most-traded December wheat NWTZ9 ended 0.3 percent higher at 1,402.8 rupees per 100 kg.

"Wheat futures traded up today on fresh buying supported by firm local demand and low supplies," said an analyst with a Delhi-based commodity brokerage.

Recent rains in India's wheat-growing northern states, mainly Uttar Pradesh, Punjab and Haryana, will favour wheat sowing even though high temperatures have reduced the overall crop area, farm and weather officials said. See [ID:nDEL131333]

India aims to raise wheat output by 2 million tonnes from last year, Farm Minister Sharad Pawar told the annual Economic Editors Conference. In 2008/09, India produced 80.58 million tonnes of wheat. See [ID:nDEB003062]

India is seeking to raise its winter wheat output to overcome a drop in rice production in the wake of the country's worst monsoon since 1972.

On Oct. 1, India had 28.18 million tonnes of wheat stocks, while the buffer norm was 11 million tonnes. At the beginning of the new marketing year in April 2010, stocks are estimated at 10 million tonnes. (Reporting by Siddesh Mayenkar; Editing by Sunil Nair)