FX.co ★ Wheat Futures Jump to 8-Week High

Wheat futures surged by 3%, reaching an eight-week high of $5.39 per bushel—marking the most significant increase since November 17. This sharp rise was attributed to the threat of crop damage from freezing conditions in both the United States and Russia. Record-low temperatures throughout the central and eastern regions of the US bolstered prices, while the abnormal chill in Russia poses risks to their agricultural output. Meanwhile, the US dollar dipped to a near four-year low following President Trump's remarks indicating a lack of concern over its decline. This depreciation is expected to enhance US export competitiveness, making American supplies more attractive compared to lower-cost Brazilian soybeans and Russian wheat. Additionally, President Trump's comments regarding the potential expansion of E15 ethanol sales improved market sentiment, sparking optimism for increased corn-based demand. However, uncertainty lingers regarding the timing of year-round sales approval and the extent of the resultant demand increase.