Wheat posted declines on Friday on concern of reduced global demand as India, the second largest consumer shifts to purchasing grain from local producers.

Wheat futures for July delivery dropped 0.2 percent or 1.5 cents to $8.225 a bushel on the Chicago Board of Trade.

Wheat prices fell by 7.1 percent this week compared to 11 percent fall in the previous two weeks.

India made an announcement earlier on Friday that it bought 10.4 metric tons of the grain locally since the harvest started last week.

Wheat production in India was forecasted to increase to 76.8 million tons by the end of June.

The U.S. Department of Agriculture (USDA) forecast India to import 2 million metric tons of the grain in the 12 months ending May 31, lower than 6.7 million tons last year.

India made an announcement on April 23 saying that it may not buy any wheat from global markets due to high output from local farmers.

India