"Wheat prices are likely to fall as fresh buying has stopped on market talks that government might curb shipments by private traders," said Prasoon Mathur, senior analyst with Religare Commodities.
The benchmark wheat contract on the National Commodity and Derivatives Exchange (NCDEX) closed provisionally down 0.58 percent at 1,370 rupees per 100 kg.
Wheat prices could touch 1,340 rupees level this week, Mathur said.
India stands to benefit from higher global wheat prices currently if it manages to seal deals through its three tenders, issued just days after the country's cabinet approved export of 2 million tonnes of wheat.
India sold only 79 percent of government wheat stocks offered in a first round of tenders, trade sources said on Thursday, deciding against awarding one of the tenders after judging bids too low at a time that global prices are soaring.
"Traders are worried that as soon as prices of wheat start rising in local market, government could impose restriction on shipments and this has dampened the spirit," said Ranjit Mankharia, a trader from Bikaner, Rajasthan.
India lifted a four-year ban on wheat exports in September, but private shipments from the South Asian nation have picked up only in recent weeks after a rally in global prices and a weaker rupee made Indian wheat competitive in the world market.
The government's wheat stocks were 49.8 million tonnes on July 1, much higher than a target of 17.1 million for the current quarter. (Reporting by Deepak Sharma; Editing by Jijo Jacob)
Source: http://in.reuters.com/article/2012/08/13/markets-india-wheat-idINL4E8JD3BA20120813
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