FX.co ★ Wheat Futures Rise on US–China Trade Deal

Wheat futures climbed more than 2% to around $6.50 per bushel in mid-May, buoyed by expectations of stronger demand following the publication of details on China’s expanded commitment to purchasing U.S. agricultural products. Under the agreement reached after high-level talks between President Donald Trump and President Xi Jinping, China pledged to import at least $17 billion in U.S. agricultural goods annually through 2028. This deal builds on existing soybean purchase commitments and is expected to generate spillover demand for other commodities, including wheat. At the same time, farmers continue to face mounting cost pressures. Recent increases in fuel and fertilizer prices—driven in part by persistent geopolitical tensions in the Middle East—are pushing production costs higher and adding volatility to the broader agricultural outlook.