Wheat Price Rally May Not Be Over Yet Amid Global Supply Concerns
The price rally in wheat futures may not be over yet, according to Naomi Blohm, senior market adviser for Total Farm Marketing. A drought in Europe has zapped production potential, with a recent estimate from France's agricultural ministry suggesting their 2026 wheat production may be close to 32 million tons, down nearly 7% from the previous year.
The drought-induced crop loss is currently priced into the market, but traders will be monitoring weather conditions in India and Australia, which are also major global wheat producers. El Nino weather conditions have already affected Europe, and there's a potential for adverse growing conditions on these countries as well.
Blohm also notes that the upcoming Aug. 12 USDA WASDE report will shed light on global production levels and demand updates. The current global ending stocks for wheat are pegged at 272.84 million metric tons, down from 279.04 MMT last year.