MUMBAI, July 16 (Reuters) - India's wheat futures are expected to remain rangebound with positive bias this week as traders hold their positions expecting a correction in prices following the recent rally.
"Traders expect a correction in wheat prices as some might choose to book profit following the recent spurt in prices," said Prasoon Mathur, senior analyst with Religare Commodities.
At 1011 GMT, the August key contract on the National Commodity and Derivatives Exchange (NCDEX) was down 1.28 percent at 1,388 rupees per 100 kg.
The contract rose nearly 21 percent in the previous three weeks and now traders are waiting for a correction in prices before taking fresh positions, Mathur said.
India lifted a four-year ban on wheat exports in September 2011, but shipments from the South Asian nation started picking up only in recent weeks after a rally in global prices and a weaker rupee made Indian wheat competitive in the world market.
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 a target of 17.1 million for the current quarter. (Reporting by Deepak Sharma; Editing by Prateek Chatterjee)