On Wednesday, wheat futures recovered some losses following softening fears over supply from the Black Sea.
In the Asian morning session, the grain’s futures for December contracts rose by 0.62% to $5.80 per bushel.
In addition, wheat rallied on Friday to record highs amid European crop losses and dry weather conditions in Russia and Ukraine. The weak US dollar has favored the commodity, as has a missile attack on a grain vessel in the Black Sea, which Kyiv has blamed on Moscow.
Analysts pointed out the primary factor behind the increase is dry weather in Ukraine and Russia as winter planting approaches. They also mentioned that speculators have reduced their bearish positions in wheat.
Meanwhile, agriculture ministry data revealed that as of Monday, Ukrainian farmers had planted 360,300 hectares of winter grains for the 2025 harvest, covering only 6.90% of the expected area. This is a notable decline compared to the previous year’s planting.
Furthermore, the area sown included 340,300 hectares of winter wheat and 16,500 hectares of winter barley. Winter wheat typically constitutes 95.00% of Ukraine’s annual crop production.
Zimbabwe Wheat Farmers Applause Govt’s Move to Pay in USD
Wheat farmers in Zimbabwe have praised the government’s decision to buy this year’s crop in US dollars, priced at $450.00 per ton for standard grade and $470.00 for premium.
This move is viewed as a positive development that aligns with import parity rates, enabling farmers to reinvest and upgrade for future production.
Furthermore, the Grain Marketing Board (GMB) announced that all payments would be made in foreign currency, which the farming community welcomed.
The GMB also confirmed it will purchase wheat from the Presidential Input Programme and self-financed farmers, allowing the latter to sell at the best market rates.
In addition, the board will serve as a last-resort buyer and collaborate with the Zimbabwe Mercantile Exchange to offer warehouse receipt services.
