Mumbai, 18 Apr (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures edged up on Thursday, recouping some of their losses from the previous session, as the U.S. dollar weakened and an exchange in Argentina said less of the crop would be planted there than previously thought.
Still, Chicago wheat remains close to its lowest levels since 2020 due to ample supply from top shipper Russia and lacklustre demand for U.S. exports.
The most-active wheat contract on the CBOT was up 0.4% at $5.54-1/2 a bushel, but fell 2.2% on Wednesday and is near a four-year low of $5.24 reached in March.
The dollar slipped from Tuesday's 5-1/2-month high, but its strengthening in recent months has nevertheless made U.S. exports less attractive to global buyers with other currencies.
U.S. wheat export inspections this marketing year are running well behind the pace of the previous season.
Wary of a La Nina weather event and drought, Argentine farmers are likely to plant 5.9 million hectares with wheat in the 2024/25 season, well below the average of the last five years, the Buenos Aires grain exchange said.
The global wheat market, however, is in surplus and the International Grains Council forecasts a rise in world production during the 2024-2025 marketing season.
Traders were monitoring dry conditions in the southern U.S. Plains and parts of Russia, but forecasts predicted rain in parts of both regions.
Low wheat prices mean profit is growing further out of reach for U.S. farmers and many do not expect to break even in 2024.
Farm office FranceAgriMer lowered its forecast for French soft wheat exports outside the European Union in 2023/24 to 10.00 million metric tons from 10.15 million.
Commodity funds were net seller of wheat, traders said.
(By Commoditiescontrol Bureau: 09820130172)
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