Mumbai, 26 Jun (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures continued to decline on Wednesday, pressured by the advancing U.S. winter crop harvest and favorable weather conditions in Russia, the world's top wheat exporter. The most-active wheat contract on the CBOT dropped 0.2% to $5.59-1/4 per bushel, hitting its lowest since April 19 at $5.56-3/4 earlier in the session.
Wheat prices have been under pressure as the U.S. harvest progresses, revealing good yields. The market is also reacting to improved weather in Russia, which has helped stabilize crops after weeks of drought and frost.
Recent thunderstorms have caused more flooding in parts of the U.S. Midwest, adding excess water to some areas. However, traders speculate that this moisture might ultimately benefit the crops.
In Europe, a looming heatwave is expected to severely impact summer crops in the southeast. Conversely, it brings relief to farmers in other regions who have struggled with prolonged rains that flooded fields and hampered plant growth.
Commodity funds were net sellers of CBOT wheat futures on Tuesday, further pressuring prices. Analysts note that these factors combined are contributing to the current downward trend in wheat futures.
(By Commoditiescontrol Bureau: 09820130172)
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