India wheat seen down on increase in acreage

MUMBAI, Dec 19 (Reuters): India's wheat futures are likely to continue to fall this week due to higher sowing in the current season that began around early October, which has raised the prospects of a record harvest for the second straight year. However, a rise in consumer demand during the on-going winter season could limit the fall in prices, analysts said. "Wheat sowing is progressing well and the acreage this year is expected to be more than the last year," said Chowda Reddy, senior analyst with JRG Wealth Management. Prices can fall 10 to 15 rupees per 100 kg in the current week, Reddy said. On Monday, the most-traded December wheat contract on the National Commodity and Derivatives Exchange (NCDEX) was trading down 0.17 percent at 1,187 rupees per 100 kg. The contract has fallen for three straight weeks and hit its lowest level in a month in the previous session. In Khanna, a key spot market in northern Punjab state, a major grower, the prices rose 7 rupees to 1,299 rupees per 100 kg, data from NCDEX showed.