Currently, a ton of wheat costs about $248 per ton, which is $1 less than at the beginning of May.
Analysts note that wheat prices are currently falling almost all over the world. This may be largely due to the expectation of a new harvest, which will cause a significant increase in supply.
To date, wheat in France, which is also a significant supplier of this type of product to the world market, has fallen in price by about $11 and is now trading at $231 per ton.
German wheat has fallen in price by $8, its current price is about $245 per ton.
Grain is also getting cheaper on other continents.
In particular, Argentine wheat has fallen in price by $13, now it can be bought for $234 per ton, Australian has fallen in price less significantly: by $1, it now costs $249 per ton.
It is noteworthy that Russian wheat is more expensive than similar goods from most other supplier countries. This may pose a threat of losing competitiveness, experts warn.
At the same time, expectations of a significant harvest in the current season further contribute to the fact that wheat continues to fall in price.
The US Department of Agriculture has increased its harvest forecasts due to the fact that the condition of crops has improved in the United States, and in many areas of Russia there has been rain, which is essential for crop vegetation.
“The May report on the world market with the first forecasts for the 2025/26 season turned out to be bearish for the wheat market.
The forecast for the global wheat harvest was a record 808.5 million tons (in 2024/25 — 799.7 million tons).
Forecasts for world wheat reserves at the end of 2025/26 turned out to be significantly higher than market expectations,” the reports note, but their consequences have already been largely overcome.
In general, today in most regions of the Russian Federation the conditions are still favorable for wheat. The only exceptions may be the Rostov and Volgograd regions, where there has not been enough precipitation for crops to overcome the very likely summer drought.
In addition, in May there were several waves of frost in the central regions of the country, which could cause significant damage to winter and spring crops.
Against this background, domestic prices for wheat are also falling.
Experts once again warn that the low cost of grain may negatively affect the market in the foreseeable future, since it is becoming unprofitable for farmers to produce it due to the rising cost price; they are increasingly giving preference to oilseeds as much more marginal crops.
