Mumbai, 29 Apr (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures softened on Monday but remained near four-month highs after concerns that adverse weather conditions in Russia, Europe and the United States could reduce supply pushed prices up around 10% last week.
The most-active wheat contract on the CBOT was down 0.2% at $6.21-1/4 a bushel after rising to $6.33-1/4 on Friday. Wheat prices rose for seven consecutive trading sessions as speculative investors were forced to cover some of their large short positions.
In Russia, the world's biggest wheat exporter, the state weather forecaster said it sees a threat of drought persisting in May in the eastern half of the Southern Federal District, a key cropping region.
Russian export prices rose last week but the country is still shipping record quantities of wheat after two consecutive bumper harvests. Russia's 2024 grain harvest could drop to 132 million metric tons from 144.9 tons in 2023, the country's agriculture ministry said last week.
Dry weather in parts of the central United States and freezing conditions in parts of Europe were also fuelling supply concerns.
The European Commission last week cut its forecast for the European Union's main wheat crop in 2024/25 to a new four-year low.
In France, the EU's top producer, the condition of soft wheat crops edged down last week to remain at a four-year low, data from farm office FranceAgriMer showed.
Wheat's rally follows a long period during which plentiful cheap supply from the Black Sea pushed lower, with CBOT wheat falling in March to $5.23-1/2, its lowest since 2020.
Russia continues to ship huge amounts of wheat. Ukraine's grain exports could also total 6-7 million tons in April despite Russian attacks on its port infrastructure.
(By Commoditiescontrol Bureau: 09820130172)
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