FX.co ★ Wheat Hits 9-Month Low

Wheat futures have declined to approximately $5.00 per bushel, reaching their lowest point since August 27, 2024. This drop is primarily due to favorable weather conditions and weak export activities, overshadowing the optimism generated by the recent trade agreement between the US and China. Enhanced weather conditions in the US Plains have improved the outlook for the winter wheat crop, and rain forecasts in Ukraine and Russia have alleviated worries about possible crop stress, further pressuring prices downward. Despite this, the market has responded positively to the US-China trade deal, which includes a reduction in US tariffs on Chinese goods from 145% to 30% and a decrease in Chinese tariffs on US imports from 125% to 10%. Investors are now focusing on the upcoming USDA supply and demand report, expected today, which is anticipated to reveal stable wheat stock levels.