Global Wheat Prices Fall to Lowest Level in Five Years

Global wheat prices have been declining for the fourth consecutive day, reaching their lowest point since 2020. The main reason for this is optimistic forecasts regarding supply volumes and increasing tensions in trade relations between the US and China.

This is reported by AgroReview

Harvest Forecasts and Market Impact

Analysts note that against the backdrop of stable global demand and significant world stocks, end buyers are not rushing to actively purchase wheat.

“Global demand is a common phenomenon, and significant world stocks mean that end consumers have no reason to be aggressive buyers at this time,” reads a note in the Hightower report.

Last week, the consulting firm SovEcon raised its estimate for wheat production in the Russian Federation, which remains the leading exporter of this crop. Additionally, production in Argentina, another key supplier, is expected to reach record levels similar to the results of the 2021-2022 season.

Trade Tensions Between the US and China

Additional pressure on the market is created by the escalation of trade disputes between the US and China, which negatively affects forecasts for demand for American soybeans. This, in turn, indirectly impacts other crops, including wheat and corn.

In the latest confrontation between US President Donald Trump and Chinese leader Xi Jinping, both sides stated that the initiative now lies with the opponent, and the time until a new escalation of tariffs is rapidly diminishing.