Mumbai, 19 Jun (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures plummeted to nearly two-month lows on Tuesday, driven by the advancing U.S. harvest and reports of promising initial yields in Russia, traders reported. Favorable rains in drought-affected regions of the Black Sea added to the pressure on prices, signaling potential relief for the wheat crop there.
CBOT July soft red winter wheat dropped 9-1/2 cents, closing at $5.82 per bushel. Earlier in the session, the most-active contract touched $5.80 per bushel, marking its lowest since April 22. Meanwhile, K.C. July hard red winter wheat fell 4-3/4 cents to settle at $6.00-3/4 per bushel, with the most-active K.C. September HRW wheat declining 5-3/4 cents to $6.09-3/4 per bushel. MGEX July spring wheat concluded the session down 6-1/2 cents at $6.32 per bushel, with several contracts hitting new lows for the day.
Adding to the downward pressure, the U.S. Department of Agriculture (USDA) reported better-than-expected weekly condition ratings for both U.S. spring and winter wheat crops. The USDA noted that the winter wheat harvest was 27% complete, up from 12% the previous week and ahead of the five-year average of 14%. Additionally, 76% of the spring wheat crop was rated in good to excellent condition, up from 72% last week and surpassing analysts' expectations. The winter wheat crop was rated 49% good to excellent, up from 47%.
In the Black Sea region, rains have alleviated some of the damage to the wheat crops in Ukraine and Russia, further influencing the market.
Furthermore, the European Commission reported that soft wheat exports from the European Union since the start of the 2023/24 season reached 29.15 million metric tons by June 16, down from 30.73 million tons a year earlier.
Overall, the convergence of advancing U.S. harvests, favorable weather conditions in key growing regions, and improved crop ratings has contributed to the decline in wheat futures, reflecting a market increasingly focused on abundant incoming supplies.
(By Commoditiescontrol Bureau: 09820130172)
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