Trump election creates unrest in wheat futures markets
Wheat prices have been falling on the world market since the election of Donald Trump as US president.
The global market has been captivated in recent days by the presidential elections in the US. The election of Donald Trump this week led to some unrest on international markets, including the wheat futures markets. This is due to the fear of trade restrictive measures.
The Chicago wheat futures market fell 1.75% on Wednesday. On the Hamburg grain exchange, wheat went from €217.50 to €211.00.
EU wheat exports drop
The European Union reports that wheat exports fell by 31% to more than 7.7 million tons in the period from July 31 to November 3 this year. Buyers from North Africa and the Middle East often opted for cheap wheat from countries in the Black Sea region, such as Ukraine and Russia. Diplomatic tensions between Algeria and France add to the problem. Algeria announced that it no longer wants to buy wheat from French suppliers.
Source of cheapest wheat changes
The cheapest offers in recent weeks no longer came from Russia – export taxes and a disappointing Russian grain harvest are to blame – but from Ukraine, Bulgaria and Romania. But the US Department of Agriculture’s Foreign Agricultural Service in Kyiv reports that Ukrainian grain exports are expected to decline in the 2024/25 marketing year due to smaller harvests, tighter export supplies and problems with shipping through the Black Sea. The agency forecasts an 18% drop in wheat exports to 15.2 million tonnes.
