Mumbai, 21 Feb (Commoditiescontrol): Chicago Board of Trade (CBOT) wheat futures on Wednesday shed some gains from the previous session as plentiful supply and falling Russian export prices weighed on market sentiment, pushing U.S. futures towards multi-year lows.
The most-active wheat contract on the CBOT was down 0.4% at $5.76-3/4 a bushel, after surging 3.3% on Tuesday.
Traders attributed Tuesday's rally to a bout of short-covering, triggered by a weakening dollar , which makes U.S. farm products more affordable for importers, and anticipation that Washington may impose new sanctions on Russia.
Despite the rally, CBOT wheat has lost around 8% so far this year and hovered near September's three-year low of $5.40.
Commodity funds have built large net short positions in wheat, leaving them prone to short-covering rallies.
Analysts said Russian wheat export prices continued to fall last week, maintaining pressure on the market.
Soft wheat exports from the European Union since the start of the 2023/24 season in July had reached 19.90 million metric tons by Feb. 13, EU data showed.
Ukraine's combined grain and oilseeds exports rose to 3.1 million metric tons in Feb. 1-15 from 2.2 million tons in the same period in January, the Ukrainian traders' union UGA said.
(By Commoditiescontrol Bureau: 09820130172)
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