CBOT wheat markets witnessed a decline yesterday

13-Nov-2024 08:23 AM

CBOT wheat markets witnessed a decline yesterday
The CBOT wheat market experienced a decline yesterday, although there were some positive developments in both the global and domestic wheat sectors. Here's a detailed breakdown of the key points:

Global Wheat Market Developments
US Wheat Exports: In the week of November 7, the United States exported 350,000 tons of wheat. Significant destinations included South Korea (84,000 tons) and the Philippines (57,000 tons). Total exports for the season have now reached 10.1 million tons, marking a 28% increase over the same period last year. This is a positive sign of a rebound in wheat exports, as well as maize and soybean exports from the US, which have been showing an upward trend after several years of decline.

Japan's Tender: Japan has issued a tender for the purchase of 114,000 tons of wheat, which suggests steady demand from key global buyers.

France's Soft Wheat Production: The production of soft wheat in France, one of Europe's largest producers, is expected to reach 25.56 million tons. This indicates robust supply from the region, which may affect market dynamics, particularly in Europe and other wheat-importing nations.
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Domestic Wheat Market
Delhi Wheat Price Movement: On November 12, wheat prices in Delhi showed an upward trend, with several news outlets reporting this rise. The rise in prices may be a result of tightening domestic supply or other market factors.

OMSS Scheme: Attention is now on the government's decision regarding the Open Market Sale Scheme (OMSS), which could help control wheat prices if the situation calls for intervention. The timing of when this scheme will be opened remains uncertain, but it will be an important factor in shaping the domestic wheat market in the coming weeks.

Summary
While global wheat export numbers from the US are strong, signaling increased demand, the domestic wheat market is seeing price increases, especially in Delhi. The potential for government intervention through the OMSS scheme could influence the direction of prices in India.