Commodity Wrap: Wheat, Copper look bearish

The weakening dollar pushed up commodities prices. Last week's rise in precious metals is also likely to continue. From the base metals pack, lead was the top gainer on the LME. The downtrend in copper, witnessed during the week, is likely to continue as China, the world's largest consumer, imports less of the metal. Good weather conditions supporting production forecasts eased prices of most agri commodities, barring corn and sugar

Wheat
Wheat futures saw a significant correction of around 5% on CBOT last week. The drop in prices came after the US Department of Agriculture raised the production forecast of the winter harvest. Wheat futures have gained 74% over the past one year on account of drought-like conditions affecting wheat production in the US, Europe and China. With most of the bad weather-induced drop in global production already discounted, any positive news about an increase in production is likely to trigger a correction in prices. On the domestic front, the timely arrival of monsoon augurs bearishness for wheat.