Mumbai, 15 May (Commoditiescontrol): Wheat futures on the Chicago Board of Trade (CBOT) saw a modest increase on Wednesday, climbing 0.2% to $6.73-1/2 per bushel, as concerns over adverse weather affecting Russian wheat supplies influenced trading sentiment.
Russia, a major global wheat exporter, has experienced significant crop damage this year, with the country's nominee for agriculture minister reporting that approximately 500,000 hectares of crops were lost due to unfavorable weather conditions. Despite these setbacks, the official assured that Russia possesses adequate resources to replant the affected areas.
The southern regions of Russia, known for their agricultural output, have been particularly hard-hit by dry conditions and unexpected frosts, prompting analysts to revise their harvest projections downward. However, recent weather forecasts have somewhat alleviated fears of more extensive crop damage, which initially drove wheat prices to a ten-month peak before seeing a slight retreat.
Market dynamics were also influenced by actions from commodity funds. According to traders, these funds were net sellers of CBOT wheat futures on Tuesday, contributing to the fluctuating market landscape.
The ongoing developments in Russian wheat production are closely monitored by global markets, given the country's significant role in international wheat trade. These concerns over supply disruptions are critical in shaping wheat futures, reflecting broader uncertainties in global agricultural commodities.
(By Commoditiescontrol Bureau: 09820130172)
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