Wheat futures experienced a slight dip below $5.25 per bushel on Monday, hovering just under the one-week peak of $5.31 observed on Friday. This movement comes amid increased optimism regarding the ongoing U.S.-China trade discussions. Investors are keenly awaiting further updates following U.S. President Donald Trump's comments on Sunday, highlighting China's openness to reaching a deal, though he indicated there are no current plans to communicate directly with President Xi Jinping this week. Last week, Beijing announced it was in the process of reviewing a U.S. proposal to resume dialogue concerning Washington's punitive tariffs.
However, any significant upward movement in prices may be tempered by improving crop conditions in the Plains, where recent rainfall has ameliorated drought conditions. The USDA reported net weekly U.S. wheat sales for the 2024/25 delivery period at 72,000 metric tons (equivalent to 2.65 million bushels), marking a 24% decrease compared to the four-week average, but still within anticipated ranges. Notably, Thailand emerged as the top buyer with a purchase of 58,000 metric tons.
