FX.co ★ Wheat Hits 1-Month Low

Wheat futures have declined to approximately $5.20 per bushel, marking their lowest point since March 4. This downturn follows China's decision to implement a 34% retaliatory tariff on U.S. goods. This move is a counteraction to recent trade policies by President Donald Trump, which outlined a baseline 10% tariff on all U.S. imports, alongside additional tariffs on major trading partners, including a 34% levy on Chinese imports. Previously, China had imposed tariffs on $21 billion worth of U.S. agricultural exports in retaliation for earlier U.S. trade actions. On the supply front, the U.S. Department of Agriculture's March Prospective Plantings report has forecasted a 2% reduction in U.S. wheat acreage for the year, bringing it down to 45.35 million acres—slightly below the market's expectations of 46.50 million. Should this projection hold, it would represent the second-lowest level of all-wheat planted area since 1919. Meanwhile, as of March 1, wheat stocks reached 1.24 billion bushels, reflecting a 14% increase from the previous year and slightly surpassing the consensus prediction of 1.22 billion bushels.