Mumbai, 18 May (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures concluded the week lower, impacted by the annual Kansas wheat tour projecting above-average yields. CBOT July wheat settled at $6.51-1/4 per bushel on Friday, down 12 cents. Over the week, CBOT July wheat fell by 12-1/4 cents per bushel, or approximately 1.9%.
Kansas City (K.C.) July hard red winter wheat dropped 11-1/2 cents to $6.61-3/4 per bushel, while MGEX July spring wheat decreased by 9-1/4 cents to $7.11-1/2 per bushel.
The Wheat Quality Council's annual Kansas tour, conducted on Thursday, estimated the state’s wheat yield potential at 46.5 bushels per acre (bpa). This marks the highest yield projection since 2021 and exceeds the five-year tour average, adding pressure to wheat futures as traders anticipate a robust harvest.
Conversely, wheat crops in Russia, the world's leading wheat exporter, have suffered due to an unexpected return of frost in May, affecting central and southern regions. By May 16, eight Russian regions had declared a state of emergency due to significant crop damage. Despite these challenges, Russia's wheat exports for the 2024/25 season are forecasted to reach 46.9 million metric tons, according to the Russian Union of Grain Exporters.
The positive yield outlook from Kansas contrasts with the adverse weather conditions in Russia, creating a complex global wheat market scenario. While the higher yield projections from the Kansas tour have contributed to the decline in U.S. wheat futures, the uncertainty in Russian wheat production could influence future market dynamics.
Overall, the wheat futures market experienced notable declines this week, driven by optimistic yield projections from the Kansas wheat tour. Market participants will continue to monitor the developments in Russia’s wheat production and the ongoing impact of weather conditions on global wheat supply and demand.
(By Commoditiescontrol Bureau: 09820130172)
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