Wheat Hits 17-month High

Wheat prices reached $6.1 per bushel in late March, nearing their highest level since October 2024, as persistent dryness across the US Plains raised concerns over winter crop yields. Investors also awaited a critical US planting outlook report, set for release later in the day, which could further influence market sentiment. Deteriorating conditions in key growing regions, including Kansas, the nation’s top wheat producer, added to the upward pressure. USDA data showed only 40% of Kansas’ winter wheat was rated in good or excellent condition as of Sunday, down from 46% the prior week and 49% a year ago, as warm, dry weather stressed crops. Adding to the uncertainty, the ongoing conflict involving Iran is expected to have altered US farmers’ planting plans, potentially pushing spring wheat acreage to its lowest level since 1970. Rising fertilizer and fuel costs have further dimmed profit expectations, reinforcing the bullish trend in wheat futures.

Wheat increased to 614.25 USd/Bu, the highest since October 2024. Over the past 4 weeks, Wheat gained 6.88%, and in the last 12 months, it increased 13.6%.

Wheat futures climbed to around $6.0 per bushel in late March, as farmers scaled back plantings amid growing concerns over fertilizer supplies. In Australia, one of the world’s largest wheat exporters, growers are cutting back on acreage as the availability and cost of key crop nutrients become increasingly uncertain amid the prolonged Middle East war. The situation has been exacerbated by stalled shipments through the Strait of Hormuz, a critical route for global fertilizer exports, which has driven prices higher and limited access for farmers worldwide. Many producers now face the dual challenge of navigating rising input costs while contending with historically weak wheat prices and ample global inventories, pressures that predated the current geopolitical crisis but are now intensified by it.