Wheat prices remain under pressure with abundance in global supply

Wheat prices (Symbol: Wheat-C) have shown a modest recovery but remain close to their lowest levels since 2020. However, this slight uptick comes after a week in which wheat prices have declined, reflecting a broader bearish trend fueled by ample global supply. We see the weekly chart for wheat showing a persistent downtrend. This decline is largely driven by the abundant supply of cheap grain from the Black Sea region, particularly from Russia and Ukraine.

Russia, one of the world’s leading wheat exporters, is expecting a bumper harvest this season, which will further contribute to the global supply glut. Meanwhile, Ukrainian grain exports have continued at a steady pace despite ongoing geopolitical tensions, adding to the oversupply in the market.

Read more to find out why wheat prices dropping.