Mumbai, 13 May (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures eased on Monday as traders locked in profits after prices climbed to nine-month highs last week over concerns that bad weather conditions are damaging crops in top exporter Russia.
The most-active wheat contract on the CBOT was down 1.1% at $6.56-1/4 a bushel.
Wheat rose to $6.65 on Friday, its highest level since last August. Record shipments from top exporter Russia had pushed prices to $5.24 in March, the lowest since 2020, but dry and then cold weather in Russia has damaged crops.
The weather conditions pushed prices higher and forced speculators to abandon bearish bets.
Three of Russia's key grain-growing areas declared a state of emergency due to May frosts. Authorities have said farmers in some areas will need to re-sow crops and consultants Sovecon downgraded their forecast for the 2024 wheat crop to 89.6 million metric tons from 93 million tons.
Parts of the U.S. wheat belt have also suffered dry weather, and the U.S. Department of Agriculture said on Friday that U.S. wheat ending stocks for 2024/25 would be 766 million bushels, well below analysts' estimates for 786 million.
The USDA projected global wheat ending stocks at 253.61 million tons, below analysts' estimates for 257.37 million tons.
In France, meanwhile, the condition of the country's main wheat crop improved slightly last week but was still its weakest in four years, farm office FranceAgriMer said.
Speculators sharply reduced their net short positions in CBOT wheat in the week ended May 7, and traders said they were net buyers again on Friday.
(By Commoditiescontrol Bureau: 09820130172)
0 Comments 
Post Comment 
