FX.co ★ Wheat Hits 3-Week High

Wheat futures have continued their upward trajectory, reaching approximately $5.50 per bushel, marking their highest point since March 21. This rise is largely attributable to President Trump's recent decision to halt some of his proposed tariff increases, coupled with a general weakening of the U.S. dollar. Earlier this week, President Trump revealed plans to reduce tariffs on key trading partners such as Mexico, the Philippines, Japan, and South Korea to a baseline of 10% as negotiations for trade agreements persist. Nevertheless, the U.S. has increased tariffs on Chinese imports to 145%, prompting China to retaliate by imposing a 125% tariff on all U.S. imports. In the midst of these developments, the USDA has adjusted its forecast for U.S. wheat supplies, revising the estimated 2024-25 ending stocks upward to 846 million bushels from the previous 819 million, surpassing market forecasts of 822 million. Additionally, the USDA has decreased its projections for global corn stocks.