FX.co ★ Wheat Hits 2-Week High

Wheat futures surged past $5.40 per bushel, reaching their highest point since March 24, driven by increasing weather-related concerns in major cultivation areas, a general weakening of the dollar, and ongoing uncertainty surrounding trade tariffs that could further impact U.S. agricultural exports. On Wednesday, President Trump's extensive "reciprocal" tariffs were enacted, including a significant 104% duty on Chinese imports. In retaliation, Beijing cautioned it would respond strongly if tensions continue to escalate. Concurrently, dry conditions in the Central and Southern Plains of the U.S., along with forecasts predicting limited rainfall, are anticipated to exert further pressure on wheat crops. According to Monday's USDA report, 48% of the U.S. winter wheat crop was rated as being in good-to-excellent condition, slightly exceeding analyst forecasts of 47% but down from 56% during the same period last year. Market analysts are now looking ahead to the USDA's upcoming supply and demand report, scheduled for release on Thursday.