Mumbai, 06 Dec (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures extended their rally for a fourth consecutive session on Friday, poised for a weekly gain amid worries about poor winter wheat crop conditions in Russia.
The most-active wheat contract edged up 0.13% to $5.59 per bushel, registering a 2% weekly increase.
Market analysts pointed to reduced wheat production in Russia as a significant driver of price support. "Lower output in Russia could drastically limit exportable stocks at a time when the stocks-to-use ratio among the top eight wheat exporters is at its lowest in over a decade," said Andrew Whitelaw, an agricultural consultant at Episode 3 in Canberra.
Russia's Deputy Prime Minister Dmitry Patrushev highlighted challenges with the country's winter wheat crops, which are reportedly in poor condition and may require partial replanting with spring crops. The outlook for next year's harvest remains uncertain.
Adding to supply concerns, Ukraine’s shipping capabilities in the Black Sea could face heightened risks, according to Reuters analyst Karen Braun. Together, Russia and Ukraine accounted for nearly one-third of global wheat exports in the last marketing year, making any disruptions significant for the global market.
Meanwhile, Argentina's wheat production is showing promise, with the Buenos Aires Grain Exchange revising expectations upward as ongoing harvests reveal better-than-anticipated yields.
In Canada, wheat production increased in 2024 compared to the previous year, according to a Statistics Canada farm survey. However, the survey also indicated a decline in canola and barley output.
Additionally, commodity funds were net buyers of CBOT wheat futures on Thursday, further bolstering prices as traders monitored the global supply outlook.
(By Commoditiescontrol Bureau: 09820130172)
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