Mumbai, 21 May (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures eased on Tuesday, taking a breather after a nearly 6% surge in the previous session driven by lower U.S. winter crop ratings and frost damage in Russia. The most-active wheat contract on the CBOT fell 0.5% to $6.85-1/2 a bushel, after gaining 6% on Monday.
The U.S. Department of Agriculture (USDA) reported a decline in the U.S. winter wheat crop condition, rating it at 49% good to excellent in its weekly crop progress report on Monday. This was down 1 point from the previous week and 2 points below the average estimate from a Reuters poll of 14 analysts. Despite the decline, the crop's condition is still the highest for this time of year since 2020, according to USDA data.
In Russia, wheat export prices surged sharply last week due to crop damage from May frosts, which led to further cuts in harvest forecasts. The price of 12.5% protein Russian wheat for free-on-board (FOB) delivery in June rose to $239 per metric ton, up from $221 per ton the previous week, according to the IKAR consultancy.
Severe frosts across northern and eastern Ukraine could also reduce grain and oilseed harvests, warned analyst APK-Inform.
Commodity funds were net buyers of CBOT wheat futures contracts on Monday, traders reported.
Despite the recent easing, wheat futures remain influenced by lower U.S. crop ratings and adverse weather conditions in key producing regions, suggesting continued market volatility ahead.
(By Commoditiescontrol Bureau: 09820130172)
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