Wheat Hits 13-month Low

Wheat decreased to 577.50 USd/Bu, the lowest since March 2026. Over the past 4 weeks, Wheat lost 3.3%, and in the last 12 months, it increased 6.64%.

Wheat futures dropped 3% to below $5.80 per bushel in early April, hitting their lowest level since March 5th, following US President Trump's announcement of a two-week ceasefire with Iran. The deal came after he threatened to destroy Iranian energy and transportation infrastructure. Meanwhile, Iran agreed to temporarily reopen the Strait of Hormuz, a crucial oil shipping route. The agreement was reached just before Trump's 8 p.m. ET deadline, with US-Iran talks scheduled for Friday in Islamabad. The decline in wheat prices was also influenced by forecasts of rainfall in the drought-hit US Plains, which could improve winter wheat yields. Meteorologists expect beneficial rain in the eastern two-thirds of the wheat belt over the next ten days, although the far western third may miss out. The USDA's first 2026 winter wheat report revealed that only 35% of the crop was rated as good to excellent, the lowest for this time of year since 2023, and well below the 48% recorded in 2025.

Wheat futures fell below $5.95 per bushel, marking a two-week low as forecasted rainfall across the United States Plains is expected to alleviate severe drought conditions in key growing regions like Kansas. This downward pressure persists despite ongoing geopolitical turmoil in the Middle East where the rejection of a ceasefire and threats to energy infrastructure have pushed fuel and fertilizer costs higher. While speculative investment funds recently adopted a bullish stance on Chicago wheat for the first time in nearly four years because of global supply risks, the immediate prospect of improved soil moisture has weighed on the market. Agriculture officials estimate that total United States wheat acreage will drop to its lowest level since 1919 as farmers finalize spring planting plans under the shadow of a virtual shutdown in the Strait of Hormuz. Market participants now await federal crop condition ratings and upcoming supply reports.