Mumbai, 20 Jun (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures continued their decline for a fourth consecutive session on Thursday, as improved crop production forecasts from major exporting nations alleviated supply concerns. The September contract dropped to its lowest level in two months.
Following the reopening of the CBOT after Wednesday's public holiday, the most-active wheat contract fell by 0.1% to $5.98-1/2 a bushel, having dipped as low as $5.97 earlier.
Russia's IKAR agricultural consultancy increased its wheat crop forecast for the year to 82 million metric tons, up from 81.5 million tons. Russia, the world's largest wheat exporter, has seen favorable conditions boosting its production outlook.
In Argentina, the Buenos Aires Grains Exchange raised its wheat planting forecast, citing higher wheat prices and reduced input costs as incentives for farmers to increase sowing, despite dry conditions in certain areas.
Germany's wheat crop for 2024 is expected to decrease by 5.5% year-over-year to 20.34 million metric tons, according to the country's association of farm cooperatives. However, recent rainfall is not anticipated to significantly impact the crop.
In other commodities, Ukraine's corn production was revised upward by 0.8% due to improved soil moisture levels across key growing regions, according to LSEG Commodities Research.
Commodity funds were net sellers of CBOT wheat futures contracts on Tuesday, reflecting the broader market sentiment amid the updated global production forecasts.
These developments highlight a trend of easing supply concerns in the wheat market, driven by positive adjustments in production forecasts from key exporting countries. The ongoing decline in CBOT wheat futures underscores the market's response to these improved outlooks, with traders adjusting positions accordingly.
(By Commoditiescontrol Bureau: 09820130172)
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