MUMBAI (Commodity Online): Global wheat prices are expected to remain unchanged for the time being as the prices already touched at the bottom level, said an Industrial official.
Global wheat prices are unlikely to fall further for the next three months as at present prices are close to multi-year lows, Chris Vanhonacker, Commercial Director of Rias Trading was quoted by Dow Jones Newswires.
He said wheat futures on the Chicago Board of Trade may now hold close to $5/bushel for some time and whether there is a fresh downward pressure from a good summer harvest in Europe and Russia will only be known in July and August.
July CBOT wheat futures contract ended 17 1/2 cents or 3.46% lower Monday at $4.88/bushel. Russian wheat with 11.5% protein is being offered around $175/ton, free-on-board for near-month shipment.
Many buyers in the spot market reduced their purchases on expecting a strong downward correction in prices that expected to prevent the prices from further fall, he said
Global wheat production has been at a record high for two successive years and inventories in countries such as the U.S. are also comfortable. According to FAO estimates, global wheat stocks are expected to reach 183.5 million tons by June 2010, up 28% from two years ago.