Mumbai, 14 Mar (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures on Thursday slumped towards their lowest levels since 2020 as supply of cheap Russian grain continued to push down prices and undermine the competitiveness of U.S. crops.
The most-active wheat contract on the CBOT was down 0.7% at $5.40-1/4 a bushel, and nearing Monday's low of $5.23-1/2, the lowest since August 2020.
Russia, the world's top wheat exporter, is flooding the global market with cheap supply as it draws down inventories ahead of an expected bumper harvest.
Refinitiv data show benchmark Russian wheat export prices slipped below $200 a metric ton ($5.44 a bushel) this week for the first time since August 2020.
Around 500,000 metric tons of U.S. wheat export sales to China have been cancelled in the past week, according to the U.S. government, likely due to the recent slide in prices.
Farm office FranceAgriMer increased its forecast of French soft wheat stocks this season to a 19-year high due to weakening export prospects.
Australian farmers are likely to plant more wheat in the coming growing season at the expense of canola, which is forecast to be less profitable, Rabobank said.
Commodity funds were net sellers of Chicago wheat futures on Wednesday, adding to an already significant bearish position, traders said.
(By Commoditiescontrol Bureau: 09820130172)
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