Wheat prices fall to 9-month low

Global wheat futures fell to the lowest level since July 2024.

According to Dennis Woznesenski, agricultural economist at Commonwealth Bank of Australia, the pressure on prices is due to the approach of the new harvest, Bloomberg reports.

He noted that the situation with the harvest in the United States and Russia currently looks less alarming than previously expected.In addition, rains are forecast in the Black Sea region, which should improve soil moisture and contribute to the growth of winter wheat after the early season drought.

The U.S. government plans to announce its forecasts of global supply and demand for the 2025/26 season on May 12.According to the average estimate of analysts, USDA is expected to estimate the world stocks at 261.4 mln tonnes, slightly higher than the forecasted 261 mln tonnes by the end of the current season.

However, stocks at this level will remain close to the lowest level in the last 10 years. This makes the market vulnerable to any weather shocks before the harvest.

In some parts of the European Union, drought is recorded, and farmers in China are also struggling with unfavorable weather conditions, experts add.

At the same time, it is noted that soybeans reached a two-week high amid the agreement between the US and China to de-escalate the tariff war.

Tags: prices, wheat