Wheat Prices Plummet Amid Tariff Cut Fizzles

CBOT wheat futures plummeted to a five-week low, defying expectations that a US-China tariff cut would boost prices. The $60 billion package, which included lower duties on US corn and wheat, failed to materialize into increased demand for US farm goods.

Traders pointed out that Beijing's reduced tariffs didn't change the near-term picture, as there was no indication of stepped-up purchases of US wheat or soybeans. The market was left to the whims of fund selling and a stronger US dollar, which made US grain look more expensive to overseas buyers.

The weather across the US Plains also played a role in wheat prices, with rain helping some areas but leaving moisture gaps elsewhere. Uncertainty around Black Sea shipments due to disruptions in Russian and Ukrainian exports added to the market's volatility.