FX.co ★ Wheat Futures Trade Near 1-Month High

Wheat futures climbed above $6.10 per bushel, their highest level since March 31, as deepening drought conditions tightened supply expectations and prolonged tensions in the Middle East amplified geopolitical risk.

The US Department of Agriculture reported that only 30% of the winter wheat crop was rated in good or excellent condition as of April 19, down from 34% the previous week and 45% a year earlier. At the same time, the National Drought Mitigation Center noted that drought now affects 70% of winter wheat areas, up from 50% in late February. Kansas Wheat also cautioned that limited rainfall during a key growth phase could further depress yields.

Wheat futures were additionally supported by mounting concerns over global food inflation, as higher fertilizer and fuel costs—exacerbated by ongoing Middle East tensions—push input prices higher. More recently, hopes for a rapid resolution of the regional conflict have dimmed, with both the US and Iran imposing blockades in the Strait of Hormuz, a critical chokepoint for global energy and trade flows.