MUMBAI, Aug 21 (Reuters) - Indian wheat futures are expected to rise this week on buying by exporters, after a recent rally in global prices boosted demand for the grain from the South Asian nation.
“Exporters are getting good orders from Southeast Asian countries and are buying in good quantity from spot markets,” said Manjit Singh, a trader based in the Khanna spot market in Punjab.
Thai feed millers bought 80,000 tonnes of Indian wheat and South American soymeal this week, while Pakistan sold 80,000 tonnes of corn into Southeast Asia.
The Key U.S. wheat futures on Chicago Board of Trade (CBOT) have rallied 40 percent since mid-June with the expansion of a drought in the Midwest farm belt that is now the most extensive in 56 years.
The most active September wheat contract on the National Commodity and Derivatives Exchange (NCDEX) was trading up 2.42 percent at 1,481 rupees per 100 kg at 0822 GMT on Tuesday.
In the Khanna spot market, the largest grain market in India, wheat rose 25 rupees to 1,450 rupees per 100 kg.
Bulging stocks following the record harvest forced India to lift a four-year ban on wheat exports in September, but shipments from the South Asian nation picked up only in recent months as a weakness in the rupee and a rally in global prices made Indian wheat competitive.
The government’s wheat stocks were 49.8 million tonnes on July 1, far higher than a target of 17.1 million for the current quarter. (Reporting by Deepak Sharma; Editing by Jijo Jacob)