FX.co ★ Wheat Futures Retreat on Robust China Harvest

Wheat futures eased to about $6.10 per bushel in early July, pulling back from a three-week high hit on July 9, as robust output data from China strengthened expectations of abundant global supply. Figures from the National Bureau of Statistics showed that the harvest in the world’s largest wheat producer rose to 138.95 million metric tons from 138.16 million metric tons a year earlier, even though the planted area slipped 0.3% to 23.01 million hectares. Although heavy rainfall initially delayed winter wheat sowing, favorable growing conditions, effective pest management, and government support enabled crops to rebound, delivering another strong harvest. Market attention is now focused on Friday’s USDA World Agricultural Supply and Demand Estimates (WASDE) report, which is expected to be a key driver for grain markets, including wheat.