Wheat Futures Slide as US-China Trade Deal Uncertainty Weighs

2026-05-20 08:39 By Joana Ferreira 1 min. read

Wheat futures fell below $6.7 per bushel, retreating from recent two-year highs, as doubts over a US-China trade agreement pressured prices.

The decline followed a lack of confirmation from China on the Trump administration’s claim that Beijing had agreed to purchase at least $17 billion in US agricultural products annually through 2028, in addition to its existing soybean commitments.

Prices had surged on Monday after the White House announced the deal, which came after talks between President Donald Trump and Chinese leader Xi Jinping in Beijing.

However, China’s Ministry of Commerce stated on Wednesday that the two countries had only set a “guiding target” to expand agricultural trade, without referencing the $17 billion figure.

While the agreement could boost demand for wheat and other commodities, farmers face rising costs due to higher fuel and fertilizer prices, driven by Middle East geopolitical tensions, adding volatility to the agricultural outlook.



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Wheat Futures Slide as US-China Trade Deal Uncertainty Weighs
Wheat futures fell below $6.7 per bushel, retreating from recent two-year highs, as doubts over a US-China trade agreement pressured prices. The decline followed a lack of confirmation from China on the Trump administration’s claim that Beijing had agreed to purchase at least $17 billion in US agricultural products annually through 2028, in addition to its existing soybean commitments. Prices had surged on Monday after the White House announced the deal, which came after talks between President Donald Trump and Chinese leader Xi Jinping in Beijing. However, China’s Ministry of Commerce stated on Wednesday that the two countries had only set a “guiding target” to expand agricultural trade, without referencing the $17 billion figure. While the agreement could boost demand for wheat and other commodities, farmers face rising costs due to higher fuel and fertilizer prices, driven by Middle East geopolitical tensions, adding volatility to the agricultural outlook.
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Wheat Futures Retreat
Wheat futures slipped to around $6.60 per bushel in mid-May, as investors took profits following a recent surge driven by China’s expanded commitment to purchasing US agricultural goods. Under the agreement reached after high-level talks between President Donald Trump and President Xi Jinping, China pledged to import at least $17 billion annually in US agricultural products through 2028. The deal builds on existing soybean purchase arrangements and is expected to have spillover effects that could also support demand for other commodities, including wheat. However, farmers continue to face cost pressures, with recent increases in fuel and fertilizer prices, driven by ongoing geopolitical tensions in the Middle East, raising production costs and adding volatility to the broader agricultural outlook.
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Wheat Futures Fall from 2-Year High
Wheat futures fell to around $6.5 per bushel, down from a two-year high of $6.8 reached on May 12, as traders took profits and reacted to the lack of new agricultural details from the US-China summit. Markets were disappointed that the first day of talks did not bring any concrete updates on grain trade. Attention also shifted back to fundamentals, including weather and supply concerns in the United States. Drought conditions have worsened in parts of Nebraska and Oklahoma, which is affecting winter wheat and newly planted corn and soybeans, even as some rainfall is expected in other growing areas. Crop scouts in Kansas also reported lower than expected yields for hard red winter wheat, estimating 39.3 bushels per acre compared with 53.3 last year. The USDA has also projected US wheat production at 1.561 billion bushels, the lowest level since 1972, highlighting ongoing supply pressure linked to dry conditions in the Great Plains.
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