1,074 words / 7 minute reading time

The world wheat futures markets had a positive month as 2019 drew to a close (see table below).
Demand for wheat has been strong, and that seems to be the most dominant reason for the strength.
Concerns for the 2020 wheat crop grow after every continent was affected by tricky weather conditions at some point in 2019.

Prices Changes in the Global Wheat Markets

Prices were positive for all the world wheat markets.

CBOT Soft Red Winter Wheat showed a large climb, for instance. Earlier in the year, it underwent a steep decline, but left 2019, like the others, positively.

CBOT SRW Price Chart 2019

What Has Driven the Wheat Markets Higher?

What Political Factors Have Impacted the Wheat Market?

Where Does This Leave Us For 2020?

The wheat markets have rallied into the end of 2019 as exporters have been shipping at a good rate and concerns for the 2020 wheat crop grow.
Politics with the US/China Trade Agreement place more confidence into the market, however, the tensions with Iran may well just counter those.
To add to all of this, we have the numbers which keep being churned out by various sources around the globe, including another round of USDA reports which is being released this Friday (10^thJanuary).
Estimates look for a drop of 2m tonnes in season-end stocks to 287m tonnes.

Jolyon Hobby

Growing up on a Wiltshire farm sparked my passion for agriculture. With a BSc Hons in Agriculture and Land Management, I farmed for three years before diving into a 20-year career in the UK grain trade.

In the past eight years, my focus has shifted to the agri-food supply chain, where I focus on understanding the impact of commodity price volatility and transport logistics on the food chain. My expertise now lies in analysing global wheat markets and providing support to businesses across the entire spectrum – from farm to retailer.