Wheat prices hit 5-m low amid supply surge

Wheat prices are experiencing their longest decline in over five months, driven by expectations of ample global supply and a stronger dollar. The US Department of Agriculture projects record-high global wheat production for the 2024-25 season, with Australia anticipating a bumper crop and better-than-expected yields in parts of Argentina.

The prospect of fewer interest-rate cuts by the Federal Reserve has also bolstered the dollar.

Wheat futures in Chicago have fallen for six consecutive days, marking the longest losing streak since late June, and are on track for a second weekly decline.

However, the downward trend may be tempered by a smaller crop from Russia, the world’s largest wheat exporter. Consultant SovEcon recently reduced its forecast for Russia’s 2025 production to the lowest level since 2021.

Attribution: Bloomberg

Subediting: M. S. Salama