Global wheat futures fell to their lowest level since July 2024. The reason for the fall was favorable weather conditions and the expected harvest in the Northern Hemisphere. This was reported by Bloomberg, writes UNN.
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As reported, most of the largest shippers will begin importing the harvest around the middle of the year. According to agricultural economist Dennis Voznesensky of the Commonwealth Bank of Australia, this will put pressure on prices.
He added that the crop situation in the US and Russia is currently less alarming than previously expected. In addition, rains are forecast in the Black Sea region, which should improve soil moisture and promote the growth of winter wheat after an early-season drought.
The US government is going to make its first forecasts of global supply and demand for the 2025-2026 season in a report later on Monday. According to the average estimate of analysts in a Bloomberg survey, the agency is expected to estimate global inventories at 261.4 million tons — slightly higher than the forecast 261 million tons by the end of the current season.
However, inventories at this level will remain close to their lowest level in the last ten years. This makes the market vulnerable in the event of any weather shocks before the harvest. Soils in some parts of the European Union remain dry, Vaisala said in a note, and farmers in China are also struggling with adverse weather conditions.
In other markets, soybeans reached a two-week high, amid reports that the US and China reported "significant progress" after two days of talks aimed at de-escalating the tariff war. Although no specific steps have been announced yet, improved relations could break the deadlock in agricultural trade, including soybeans, which China buys the most in the world.