Mumbai, 14 Dec (Commoditiescontrol): Wheat futures on the Chicago Board of Trade (CBOT) edged lower on Friday as the U.S. dollar strengthened, making American commodities less attractive to international buyers, according to analysts. Additionally, global wheat trade activity remained subdued, adding pressure to prices.
The March soft red winter wheat contract on the CBOT dropped 6-1/4 cents, settling at $5.52-1/4 per bushel. Similarly, K.C. March hard red winter wheat declined by 5-3/4 cents to close at $5.57 per bushel, while Minneapolis March spring wheat lost 4 cents to end at $5.98-1/2 per bushel. For the week, the most active wheat contract shed 0.90%.
Early in the week, wheat prices had gained support from a surprisingly optimistic U.S. Department of Agriculture (USDA) report, which raised U.S. wheat export forecasts by 25 million bushels. However, a simultaneous 5 million bushel increase in import projections limited the reduction in stock levels to 20 million bushels, bringing total stocks to 795 million bushels.
Despite the USDA’s forecast, export activity remained weak. The weekly Export Sales report revealed U.S. wheat export commitments of 15.698 million metric tons (MMT) as of December 5, accounting for 69% of the USDA’s export target. This figure lags behind the 76% average pace seen historically. Weekly exports totaled just 290,236 metric tons, reflecting sluggish demand.
Meanwhile, speculators made modest adjustments in their positions. According to the latest Commitment of Traders report from the Commodity Futures Trading Commission (CFTC), speculative traders reduced their net short positions on CBOT wheat by 2,607 contracts, bringing the total to 66,779 contracts. For K.C. wheat, net short positions declined by 1,994 contracts to 36,436 as of December 10.
On the global front, European wheat futures found support as the euro weakened to a two-week low against the dollar. However, trading volumes remained light with participants winding down activity ahead of the year-end holidays. Elsewhere, Black Sea region supplies continued to exert downward pressure on prices due to their competitive pricing, while ongoing harvests in Argentina and Australia also limited upward momentum.
Earlier in the week, speculation about a potential reduction in Russia’s export quota for the end of the season, coupled with lower U.S. stock forecasts, had briefly supported wheat prices. However, these factors failed to offset the impact of strong competition and slow export demand.
(By Commoditiescontrol Bureau: 09820130172)
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