Mumbai, 1 May (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures traded firm on Wednesday as traders assessed the likely impact on supply amid dry weather conditions in key growing regions of Russia and the United States.
The most-active wheat contract on the CBOT was up 0.6% at $6.06-3/4 a bushel.
Earlier this year, wheat futures fell to four-year low due to plentiful supply and the accumulation of large bearish bets by speculative investors anticipating lower prices.
Concerns that dryness would hit crops in the southern U.S. Plains wheat belt and in southern Russia pushed CBOT wheat to a four-month high of $6.33-1/4 on Friday, with speculators forced to cover some of their short positions.
But forecasts this week have predicted some rainfall in Russia in the coming days, pushing prices off their highs, and large exports from Russia continue.
Meanwhile, the U.S. dollar moved back towards last month's 5-1/2-month highs against a basket of currencies, making dollar-priced commodities costlier for non-U.S. buyers.
Commodity funds were net sellers of CBOT wheat futures on Tuesday, traders said. Adding pressure is broad weakness in commodities including metals and crude oil.
(By Commoditiescontrol Bureau: 09820130172)
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