Drought and rising fertilizer costs impact supply, pushing U.S. wheat prices to their highest level since 2024

Golden Ten Data, April 29 – Due to droughts in the United States putting pressure on wheat production and surging fertilizer costs forcing farmers to reduce the planting of grain and other high-nutrient-demand crops, wheat prices have soared to their highest level in nearly two years. Chicago soft red winter wheat futures once surged by 4.1%, reaching their highest level since June 2024; wheat sown in the U.S. Great Plains region last autumn is withering due to lack of rain, and there is currently no sign of the drought easing. On Monday evening, the U.S. Department of Agriculture maintained its crop rating unchanged, with only 30% of wheat rated as “good” or “excellent”, while the proportion of wheat rated as “poor” or “very poor” has increased. “The drought persists, and prospects for recovery remain bleak,” said No Bull Ag analyst Susan Stroud.