Wheat futures slipped below $5.95 per bushel to a one-week low, as forecast rainfall across the U.S. Plains is expected to ease severe drought in key growing areas, including Kansas. The prospect of improved soil moisture is pressuring prices even as geopolitical tensions in the Middle East—marked by the rejection of a ceasefire and threats to energy infrastructure—drive up fuel and fertilizer costs.
Speculative funds have recently turned net bullish on Chicago wheat for the first time in nearly four years, reflecting heightened concerns over global supply risks. However, near-term weather improvements are overshadowing those worries in the futures market. At the same time, U.S. agriculture officials project total wheat acreage to fall to its lowest level since 1919, as farmers complete spring planting decisions amid disruptions tied to the near shutdown of traffic through the Strait of Hormuz.
Traders now look ahead to federal crop condition ratings and upcoming supply reports for further direction.
