Mumbai, 19 Jul (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures edged lower on Friday and were on track for weekly losses, driven by favorable crop weather in the United States and expectations of abundant supply.
The most-active wheat contract on the CBOT fell 0.3% to $5.33-3/4 a bushel and was down 3% from last Friday's close. The contract reached a four-month low of $5.25 on Tuesday.
The rapid progression of the U.S. wheat harvest has added new supply to the market, exerting downward pressure on prices. The International Grains Council (IGC) on Thursday increased its forecast for the 2024/25 world wheat output by 8 million tons to 801 million tons, further bolstering expectations of strong supply.
In Argentina's agricultural heartland, polar winds hampered short-cycle wheat planting last week. However, producers are optimistic that expected rains this weekend will allow sowing to resume, according to the Buenos Aires Grains Exchange.
Commodity funds were net sellers of CBOT wheat on Thursday, traders reported. Speculators hold large net short positions in wheat, corn, and soybean crops, contributing to the pressure on wheat prices.
The combination of favorable U.S. crop weather, the rapid harvest progress, and expectations of ample global supply are key factors driving the decline in CBOT wheat futures, setting the stage for ongoing market volatility.
(By Commoditiescontrol Bureau: 09820130172)
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