FX.co ★ Wheat Declines Amid Concerns Over Potential Retaliatory Tariffs

Wheat futures have declined to approximately $5.30 per bushel, primarily due to apprehensions about potential retaliatory actions against American agricultural exports following new U.S. tariffs. President Donald Trump declared a 10% minimum tariff on all U.S. imports, coupled with increased duties aimed at pivotal trade partners, notably a 34% additional levy on imports from China. In retaliation, China, which has already imposed tariffs on $21 billion of U.S. agricultural goods, has threatened further tariffs unless the U.S. retracts its trade policies. On the supply front, the USDA's March Prospective Plantings report predicted a 2% reduction in wheat acreage in the U.S. this year, estimating it at 45.35 million acres—slightly below market predictions of 46.50 million. If these projections are accurate, this would mark the second-lowest planted area for all-wheat since 1919. Notably, as of March 1, wheat stocks amounted to 1.24 billion bushels, representing a 14% increase from the previous year and marginally surpassing the anticipated 1.22 billion.