Wheat prices surged nearly five percent this week, marking their biggest weekly gain since February as multiple supply pressures converge globally.

Wheat prices surged nearly five percent this week, marking their biggest weekly gain since February as multiple supply pressures converge globally. Chicago Board of Trade contracts hit their highest levels since June 2024, driven by persistent drought conditions across the US Great Plains and Australia. Fertilizer shortages linked to Middle East tensions are constraining crop production in major wheat-producing regions, while dry weather continues affecting the Black Sea and European growing areas. Australian wheat planting is expected to fall to a seven-year low due to weak prices and input shortages. Though ample global supplies may limit further gains, potential crop failures in Australia and Argentina could trigger additional price increases in coming months.