Why a stronger dollar, Plains drought ending, and important moisture coming to Russia, broke wheat prices

Global wheat futures weakened about 3% last week as a result of a number of factors.

Reasons for declined wheat market

A stronger US dollar makes it more expensive for countries that use other currencies to buy American wheat.

The drought in the US Plains is expected to end soon, which will increase the supply of wheat.

Russia is expected to receive significant rainfall in the coming weeks, which will improve the condition of its wheat crop.

All of these factors have contributed to a decline in wheat prices.

US dollar

The US dollar has been strengthening against other currencies in recent weeks. This is due in part to the Federal Reserve's decision to raise interest rates.

A stronger dollar makes it more expensive for countries that use other currencies to buy American wheat.

This is because the price of wheat is denominated in US dollars. When the dollar is stronger, other currencies are worth less in comparison.

This means that countries that use other currencies have to pay more for the same amount of wheat.

Plains drought

The drought in the US Plains has been a major factor in the high price of wheat in recent months.

The drought has reduced the supply of wheat, which has driven up prices.

However, the drought is expected to end soon, which will increase the supply of wheat and put downward pressure on prices.

Russian wheat crop

Russia is one of the world's largest wheat producers.

The condition of the Russian wheat crop is therefore a major factor in the global wheat market.

Russia is expected to receive significant rainfall in the coming weeks, which will improve the condition of its wheat crop.

This will increase the supply of wheat and put downward pressure on prices.