FX.co ★ Wheat Prices Surge on US Drought and Planting Uncertainty

Wheat prices climbed to $6.10 per bushel in late March, approaching their highest level since October 2024, as persistent dryness across the US Plains fueled concerns over winter crop yields. Market participants were also awaiting a key US planting intentions report, due later in the day, that could further shape sentiment. Worsening conditions in major growing areas, notably Kansas—the country’s top wheat-producing state—added to the upward pressure. USDA data showed that only 40% of Kansas’ winter wheat was rated in good or excellent condition as of Sunday, down from 46% the previous week and 49% a year earlier, as warm, dry weather strained the crop. Heightening uncertainty, the ongoing conflict involving Iran is believed to have disrupted US farmers’ planting decisions, potentially reducing spring wheat acreage to its lowest level since 1970. Rising fertilizer and fuel costs have further eroded profit expectations, reinforcing the bullish tone in wheat futures.