Wheat Futures Fall from 9-Month High

Wheat futures fell to $5.85 per bushel from a nine-month high of $6.14 on March 13, as easing tensions in the Middle East pushed oil prices lower after President Donald Trump said he would delay strikes on Iran following productive talks. Lower oil prices reduced concerns about high fuel and fertilizer costs, which had raised fears that farmers might cut back on wheat planting. However, weather risks remain a concern, with freezing temperatures in parts of the US Plains potentially damaging crops that had already started growing. Dry conditions have also added stress to fields, and farmers warn yields could be affected, although it is still too early to know the full impact. Meanwhile, US winter wheat planting was slightly lower than last season, according to official data.

Wheat futures slipped toward $6 per bushel after reaching a nine-month high of $6.14 on March 13, following a cooling in oil and soybean prices. Brent crude remains above $100 per barrel but has eased as expectations grow that more tankers may pass through the Strait of Hormuz, where a few vessels have recently resumed transit. Soybean futures dropped sharply to below $12 per bushel amid uncertainty over US trade talks with China after President Donald Trump said a planned summit with Xi Jinping could be delayed if Beijing does not help reopen the Strait. The waterway, a key route for global commodity flows, has been largely shut since US Israeli attacks on Iran, disrupting shipments of oil, fuel and fertilizer. The energy squeeze is raising costs for farmers worldwide. Meanwhile, the USDA expects global wheat production in 2025/26 to reach a record 842.1 million metric tons, with slightly higher consumption also projected.

Wheat increased to 613.25 USd/Bu, the highest since October 2024. Over the past 4 weeks, Wheat gained 11.57%, and in the last 12 months, it increased 9.86%.