Mumbai, 28 Jun (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat prices held steady on Friday, maintaining gains from the previous session amid robust demand. Despite this stability, the market is on track for its steepest monthly decline in two years due to abundant harvests across the northern hemisphere, which are bolstering global supplies.
The most-active wheat contract on the CBOT was flat at $5.79-1/2 a bushel. Wheat prices have plummeted nearly 15% in June, marking the largest decline since June 2022. Corn prices have dropped more than 5%, the biggest dip since August, while soybeans have fallen around 8%, the largest decrease since May last year.
Seasonal pressure on prices is increasing as wheat harvests progress in major exporting countries in the northern hemisphere. On Thursday, the European Commission raised its forecast for the European Union's main wheat crop this year and increased its projections for EU wheat exports for both the current and next season.
In Argentina, wheat planting for the current harvesting season has advanced rapidly over the past week due to recent rainfall over key agricultural areas, according to a weekly report from the Buenos Aires Grains Exchange published on Thursday.
Thursday's wheat market rally was supported by strong demand. The U.S. Department of Agriculture (USDA) reported net U.S. wheat export sales of 667,200 metric tons for the 2024/25 season in the week ending June 20, surpassing trade estimates of 200,000 to 600,000 tons. Healthy wheat exports, with Egypt and Algeria among the top importers, further indicated strong demand.
Traders are positioning ahead of the USDA's upcoming data release. The agency is set to publish its next quarterly stocks report for June and its 2024 acreage report on Friday at 1600 GMT.
On Thursday, commodity funds were net buyers of CBOT wheat futures contracts, reflecting anticipation of key USDA reports that could further influence market dynamics.
As the market grapples with these mixed signals—strong demand on one hand and abundant supplies on the other—wheat prices remain at the mercy of global agricultural trends and trader sentiment.
(By Commoditiescontrol Bureau: 09820130172)
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