Mumbai, 3 Jun (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures rose nearly 1% on Monday, driven by ongoing concerns over global wheat supplies. The most-active wheat contract gained 0.9%, reaching $6.84-1/4 per bushel, after hitting a 10-month high of $7.20 per bushel last week.
Prices were previously pushed higher by forecasts of a smaller Russian wheat harvest due to persistent drought and frost. However, expectations of much-needed rain in Russia caused a slight easing of prices at the end of last week.
In Europe, the condition of French soft wheat continued to decline due to persistent wet weather, with the percentage of the crop in good or excellent condition dropping to its lowest this season and remaining at a four-year low.
Meanwhile, Argentina’s National Weather Service forecasted below-normal rainfall in the western part of the country’s agricultural heartland over the next three months, with normal to below-normal rainfall expected in the rest of the Pampas region.
In contrast, Australia is experiencing favorable weather, with rain in Western and South Australia potentially adding up to a million tons to the country's wheat harvest, according to analysts.
Last week, the wheat market saw a pullback, with the CBOT July contract dropping 18-3/4 cents (2.69%). Kansas City futures decreased by 12-1/2 cents (1.73%), and MPLS spring wheat fell 13 cents (1.73%) for the July contract. Concerns over Russia's crop subsided with wetter weather forecasts, and some end-of-month profit-taking pressured markets lower.
Weekly Crop Progress data showed a 1% decline in condition ratings to 48% good/excellent, with the Brugler500 index down 2 points to 331. The spring wheat crop was 88% planted, 7% above the average pace.
The latest Export Sales report indicated a net reduction of 60,870 MT for the week of May 23, as the marketing year winds down. However, new crop sales increased to 381,695 MT.
The weekly CFTC Commitment of Traders report revealed that spec traders in Chicago wheat added 838 contracts to their net short position, totaling 25,431 contracts by May 28. In Kansas City futures, they reduced their short position by 7,016 contracts to 9,748 contracts as of Tuesday.
(By Commoditiescontrol Bureau: 09820130172)
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