Wheat Market Update - 7th January 2025

Welcome to this week’s market update! Each week, we'll delve into the market movements and key factors affecting wheat prices. Whether you're a fellow industry professional, a supplier, or simply interested in what’s happening in the market, our updates will offer valuable insights to keep you ahead of the curve.

Market Report

Grain markets experienced modest strengthening over the festive season, although activity remained subdued, before softening towards the end of last week. Ongoing concerns about the rapid pace of Russian exports, the challenging state of their winter crops, and rising domestic food prices have sparked speculation about potential further government measures. Additionally, cold weather in the US Midwest and hot, dry conditions in Argentina are offering some market support. The euro’s weakness against the US dollar, combined with uncertainty surrounding Donald Trump’s upcoming inauguration, continues to create volatility.

By the end of trading on Friday, London wheat futures saw the May 2025 contract settle at £190.75/t, while the November 2025 contract closed at £193.00/t.

Chicago grain prices saw a rebound, contrasting with a decline in European markets, amid reports that Donald Trump’s trade policies may not be as aggressive as previously feared, reducing concerns about potential trade conflicts.

Trump’s aides were reportedly exploring the idea of limiting import tariffs to industries deemed crucial for national or economic security, according to the Washington Post. Although Mr Trump dismissed the report as inaccurate and labelled it “fake news,”

The physical market in the UK remains slow, with milling wheat premiums delivered to Harlow sitting at £40 per tonne