Wheat price hits two-month high on supply concerns

July 15, 2026 at 02:34 PM1 min

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Wheat prices rose to a two-month high, driven by supply disruptions in key exporting regions. The increase reflects tightening global inventories and weather-related risks.

Price Surge

Wheat futures on the Chicago Board of Trade rose to $6.85 per bushel, the highest since mid-May. The rally was fueled by dry weather in the U.S. Plains and export restrictions in India. Kazakhstan, a major Central Asian producer, saw domestic prices follow the global trend.

Supply Constraints

India, the world's second-largest wheat producer, imposed an export ban in May to control domestic inflation. Meanwhile, drought in the U.S. reduced winter wheat yields by 12% year-on-year, according to the USDA. These factors have tightened global supplies, with stocks at a six-year low.

Market Outlook

Analysts at S&P Global expect prices to remain elevated through Q3 2026, citing persistent weather risks. The Black Sea region, a key supplier, faces uncertainty from the ongoing conflict. Kazakhstan's harvest, forecast at 14 million tonnes, may offer some relief if weather conditions improve.