Mumbai, 17 Jun (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures fell approximately 1.5% on Monday, reaching their lowest levels in six weeks due to pressure from the rapid progress of the U.S. winter crop harvest. The most-active wheat contract on the CBOT declined 1.4% to $6.04 per bushel, touching its weakest point since May 3 at $6.03 per bushel earlier in the session.
In the Black Sea region, rainfall in previously dry areas of Russia and Ukraine provided some relief for corn crops. However, analysts noted that this benefit might be limited for wheat, as the harvest season is approaching. The U.S. Department of Agriculture (USDA) reduced its wheat production estimates for major exporters Russia and Ukraine this week, citing adverse conditions such as drought and frosts.
In France, data from the farm office FranceAgriMer indicated that crop conditions for soft wheat remained stable last week. Nonetheless, harvest prospects in the European Union's largest producer remain bleak following a damp growing season.
Adding to the market's bearish sentiment, the Commodity Futures Trading Commission's weekly commitments of traders report revealed that non-commercial traders, including hedge funds, increased their net short positions in CBOT wheat.
Overall, the combination of an advancing U.S. harvest, revised production forecasts, and increased short positions by traders contributed to the downward pressure on wheat prices.
(By Commoditiescontrol Bureau: 09820130172)
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