Dec 8 Indian wheat futures fell on Thursday
following the country's decision to scrap the 10 percent import
duty on the grain to augment supplies after droughts in the past
two years depleted stocks and raised prices.
The landed cost of imported wheat is nearly 20 percent lower
than local supplies and the cut could prompt the local bulk
consumers to raise overseas purchases in the next few months.
The import duty removal follows local wheat prices
hitting a record high last month, and the Indian rupee
touching a record low last month, making imports more expensive.
"There will only be a downside of 2 percent-3 percent in
wheat prices in the near term," said a trader from central
India. "However, prices may go further down after new arrivals
next year," he said.
The January wheat contract settled 2.9 percent
lower at 1,982 Indian rupees ($29.44) per 100 kg.
* The December soyoil futures on the National
Commodity & Derivatives Exchange (NCDEX) were down about 1
percent at 728.50 rupees per 10 kg at 1150 GMT, tracking
* The most-actively January soybean contract fell 1
percent to 3,064 rupees per 100 kg, as traders continued to face
cash crunch following Indian government's decision last month to
ban high-value notes.
* The December sugar contract was largely flat and
down about 0.2 percent to 3,415 rupees per 100 kg.
* The January rapeseed contract fell 1.3 percent in
light trading to 4,644 rupees per 100 kg.
* December corn futures closed largely flat at
1,406 rupees per 100 kg.
($1 = 67.3299 Indian rupees)
(Reporting by Sudarshan Varadhan in New Delhi; Editing by