Mumbai, 18 Jun (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures fell on Tuesday to their lowest levels in two months as speculators sold contracts in response to the accelerating U.S. harvest and crop-boosting rainfall in the Black Sea region. The most-active wheat contract on the CBOT dropped 0.2% to $5.90-1/4 per bushel, after hitting $5.88-1/2, the lowest since April 23.
Wheat futures had surged to a 10-month high of $7.20 per bushel last month due to dry conditions and frosts in Russia, the world's largest exporter, which lowered harvest estimates. However, prices have since plummeted by approximately 18% as the U.S. harvest began flooding the market with supply and rains alleviated concerns over Black Sea crops.
Analysts noted a significant decline in Russian wheat export prices for the new harvest as worries about adverse weather impacts diminished. The U.S. Department of Agriculture reported on Monday that the country's winter wheat harvest was 27% complete, up from 12% the previous week and ahead of the five-year average of 14%.
Meanwhile, expectations for a record harvest in Romania are expected to partially offset lower outputs in larger producers like France and Germany, where heavy rains have damaged crops. In China, another bumper summer grain harvest is anticipated this year, according to a spokesperson from the National Bureau of Statistics.
On Monday, commodity funds were net sellers of CBOT wheat futures, reflecting the bearish sentiment in the market.
As the U.S. harvest progresses and favorable weather conditions continue in key growing regions, wheat prices are likely to remain under pressure, with the market closely monitoring harvest updates and weather forecasts.
(By Commoditiescontrol Bureau: 09820130172)
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