Mumbai, 05 Dec (Commoditiescontrol): U.S. wheat futures hit fresh contract lows on Wednesday before rebounding, supported by concerns over deteriorating winter crop conditions in Russia, the world’s top wheat exporter. This volatility underscored the interplay of weak U.S. export demand and unfavorable global weather conditions.
The Chicago Board of Trade (CBOT) March soft red winter wheat contract closed marginally higher by 3/4 cent at $5.48-1/4 per bushel, recovering from a contract low of $5.40-1/4 reached earlier in the session.
Other CBOT wheat contracts, except for the spot December, also recorded fresh contract lows before modest gains. Similarly, K.C. March hard red winter wheat settled up 1 cent at $5.42-3/4, while Minneapolis March spring wheat edged lower by 1/2 cent to $5.89-1/2.
The rebound in prices was driven by reports of poor crop conditions in Russia. According to ProZerno analysts, citing state weather data, over 37% of Russia’s winter crops are in poor condition or have failed to sprout—an unprecedented level. These concerns have raised questions about Russia's supply potential and global wheat availability.
Meanwhile, Australia’s wheat harvest faced quality downgrades due to heavy rainfall, adding further uncertainty to the global market. The weather challenges in key exporting nations provided some support to U.S. wheat prices.
On the production front, attention is turning to Statistics Canada’s crop production report, set to be released on Thursday. Analysts expect Canada’s 2024/25 total wheat output to rise to 35.04 million metric tons, compared to 32.95 million metric tons in the previous year.
U.S. export demand remains a weak spot, with traders awaiting weekly export sales data from the U.S. Department of Agriculture. Analysts estimate old-crop sales to range between 250,000 and 550,000 metric tons, while new-crop sales are projected to reach up to 50,000 metric tons.
The market's mixed signals highlight the delicate balance between regional weather challenges and the global supply outlook, keeping wheat traders on edge.
(By Commoditiescontrol Bureau: 09820130172)
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