The Wheat prices in Chicago tumbled to one and half year low
yesterday amid a general weakness in commodity prices as dollar gains
hurt the sentiments. There are indications that the early harvest from
southern Europe and Russia would turn into a season with improving
yields in grains.
The head of Russia's Grain Producers' Union
said on Wednesday that the official forecast wheat would fall short of
the farm ministry's 95m-tonne target though the early harvest results
showed early wheat yields at 4.28 tonnes per hectare, up around 1 tonne
per hectare above the results a year ago. Barley yields are also seen up
1.5 tonne per hectare at 5.24 tonnes per hectare.
Farmers across
the world are forecast to harvest 682.1 million tons of wheat in
2013-14, up 4.1% compared to a 2012-13 crop estimated at 655.1 million
tons according to the International Grains Council (IGC). Although there
is continued uncertainty about harvest prospects in some major
producers, global wheat availabilities are still set to be ample over
the year ahead, the IGC has noted.
Chicago wheat futures for
July slipped more than a percent to $6.67 a bushel - the contract's
weakest finish since November 2011.
Source by Commodity Insights
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