FX.co ★ Wheat Futures Fall to 1-Year Low

Wheat futures have declined, approaching $5 per bushel and nearing their lowest point in a year, due to robust global supply levels. The Russian consultancy firm IKAR has revised its wheat production forecast for 2025, increasing the projection from 84.5 million tons to 85.5 million tons. Additionally, the possibility of peace negotiations in Ukraine is contributing to the price drop, as a resolution may lead to the resumption of grain exports from Russia and Ukraine, both significant suppliers worldwide. Meanwhile, U.S. President Trump has assured Ukrainian President Zelenskiy of America’s commitment to ensuring Ukraine's security as part of any agreement, although specific details remain elusive. Zelenskiy has described this as a "major step forward." Furthermore, in the United States, the Department of Agriculture has noted that 50% of the spring wheat crop is rated as "good to excellent," which is an improvement of one point from last week and surpasses prior expectations, thereby exerting additional downward pressure on prices.