Mumbai, 5 Sep (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures edged lower on Thursday, but remained close to multi-week highs following a surge in short-covering by speculative investors that had lifted prices from near four-year lows.
The most-active wheat contract on the CBOT declined by 0.7%, trading at $5.77 per bushel. However, this marks a significant recovery, with prices up approximately 10% since the start of the previous week.
Wheat has been supported by reduced production in Europe, while dry conditions in the U.S. Midwest are stressing about 25% of the country's corn and soybean crops, according to the Commodity Weather Group. This has also helped boost prices for corn and soybeans.
Additionally, a weaker U.S. dollar has spurred some overseas demand for American agricultural products, providing further support to the wheat market. However, many analysts believe that global wheat supplies remain ample, which could limit further price increases.
On Wednesday, commodity funds were net buyers of CBOT wheat futures, according to traders, contributing to the recent price rally.
(By Commoditiescontrol Bureau: 09820130172)
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