MUMBAI, 14 Jan (Commoditiescontrol): Wheat futures on the Chicago Board of Trade (CBOT) ended higher on Monday, supported by bargain-buying after last week’s sharp declines and strength in corn and soybean markets. Concerns about potential crop stress from upcoming cold temperatures in the U.S. Plains and Midwest also bolstered prices.
March soft red winter wheat rose 14-1/4 cents to settle at $5.45 per bushel, rebounding from life-of-contract lows. Meanwhile, K.C. March hard red winter wheat climbed 9-1/4 cents to $5.61 a bushel, and Minneapolis March spring wheat increased 9-1/4 cents, closing at $5.93-1/2 a bushel.
Traders cited expectations that rising corn prices could encourage livestock feeders to substitute wheat, providing additional demand. The forecast of cold weather next week, which could stress winter wheat crops, added further support.
The market largely ignored pressure from a strong U.S. dollar, which reached a two-year high against other major currencies following robust U.S. jobs data. A stronger dollar typically makes U.S. wheat less competitive on the global market.
The U.S. Department of Agriculture reported wheat export inspections at 288,895 metric tons for the past week, aligning with market expectations of 200,000 to 450,000 tons.
European wheat futures edged higher, aided by a weaker euro and the strength in U.S. grain prices, despite subdued export prospects in Europe. Meanwhile, Russian wheat export prices have remained steady since the start of the year due to limited demand and holiday-related trading lulls. Analysts anticipate that Russia’s wheat shipments could decline in January.
With the focus on weather conditions and rising feed demand, wheat prices may see continued volatility. However, global export trends and currency movements are likely to remain key factors influencing the market in the near term.
(By Commoditiescontrol Bureau; +91 98201 30172)