Mumbai, 10 Aug (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures turned higher on Friday, driven by concerns over a poor wheat crop in France and strategic positioning ahead of Monday's government supply and demand report, according to market analysts. The most-active September soft red winter wheat contract rose by 5 cents to settle at $5.42-1/2 per bushel.
For the week, CBOT’s most active wheat futures recorded a modest gain of about 0.65%. In parallel, K.C. September hard red winter wheat increased by 2-1/2 cents, closing at $5.54 per bushel, while MGEX September spring wheat advanced 4-1/2 cents to $5.89-3/4 per bushel.
The market is closely watching the U.S. Department of Agriculture (USDA) report due on Monday, with a survey of analysts forecasting slightly higher U.S. wheat production. The spring wheat crop is reported to be 97% headed, with only 6% harvested, falling behind the 10% average. Spring wheat conditions remained unchanged, with a slight dip to 380 on the Brugler500 index.
Export sales data revealed a setback for the 2024/25 sales, slipping to 273,980 metric tons for the week ending August 1. However, U.S. Census data indicated a robust performance in wheat exports for June, pegged at 1.47 million metric tons, significantly surpassing last year’s figures.
Globally, Russia’s agricultural consultancy Sovecon revised its forecast for the country’s 2024 wheat crop down to 82.9 million metric tons from 84.7 million metric tons. Similarly, France’s farm ministry lowered its 2024 soft wheat output estimate, now expected to be 25% below last year’s production.
Adding to the market dynamics, Russia, the world’s largest wheat exporter, announced a 42% cut in export duties starting August 14, a move that reflects the pressure from low international wheat prices driven by oversupply.
Friday’s Commitment of Traders report highlighted that CBOT wheat speculative traders reduced their net short positions by 6,284 contracts to 71,332 contracts as of August 6. In Kansas City wheat, they covered 4,154 contracts, bringing their net short positions to 36,308 contracts as of Tuesday.
(By Commoditiescontrol Bureau: 09820130172)
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