Month: July 2017

Wheat futures fell nearly 3% on the CBOT as traders booked profits after prices rose in the last six sessions. The most active September contract had hit a two-year high of $5.60 a bushel. September wheat contract was at $5.4275 a bushel, down 3.1% from previous close. Wheat prices had risen earlier due to concerns over crop damage following drought like conditions in the mid-east US Prices were further supported by lower wheat acreage in the country as farmers are switching to soybean.

The Food and Agricultural Organization has cut its estimate for global wheat production for 2017-18 to 739.9 million tonne from 743.2 million tonne projected earlier. The decline in output is primarily on account of lower production in Ukraine and European Union due to dry weather conditions prevailing there. The estimate for overall supply has been cut to 987.0 million tonne from 990.6 million tonne. The estimate for global wheat stocks has been lowered to 255.8 million tonne, down from record high of 257.4 million tonne projected earlier. The FAO has slightly raised its estimate for global wheat trade in 2017-18 to 171.8 million tonne from 171.0 million tonne forecast earlier. The agency has forecast global coarse grain production in 2017-18 to be slightly higher at 1.35 billion tonne.

Prices of wheat rose 20 rupees in the key wholesale market of Delhi owing to falling supplies and firm demand. About 600-700 tonne of wheat arrived into the market, down 100 tonne from previous close. NCDEX August wheat contract on the NCDEX ended up 0.4% from the previous close.