🌍 Global Grain Market: Wheat Prices Plummet, Corn and Soybean Prices Decline

On February 27, 2025, the global grain market experienced a significant drop in prices. The most substantial declines were observed on American and European exchanges, with wheat suffering the steepest losses as futures plummeted across multiple trading platforms. Corn and soybeans also showed a negative trend, although their rate of decline was less severe.

Sharp Decline in Wheat Prices
Futures for Soft Red Winter Wheat (SRW) on the Chicago Board of Trade (CBOT) dropped to $206.68 per ton, marking one of the lowest levels in recent months. Similar price declines were recorded on the Kansas City (KCBT) and Minneapolis (MGEX) exchanges.
The primary cause of this drop was weak export demand. According to USDA data, for the week ending February 20, wheat exports from the United States totaled only 269,000 tons, the lowest volume in five weeks. The largest buyers were Taiwan and Mexico, along with unidentified purchasers.
Adding further pressure to the market, the US Department of Agriculture (USDA) projected an increase in wheat planting area in the US for the 2025 season, which could lead to greater supply and prolonged price suppression.

Corn and Soybeans Also Declining
The corn market was also under pressure, though its decline was less pronounced.
• May corn futures fell to $4.81 per bushel.
• December futures dropped to $4.61 ¾ per bushel.
US corn exports also decreased, with shipments for the week totaling approximately 794,000 tons, the lowest level in seven weeks. The largest buyer remained Mexico, with Colombia also purchasing significant volumes. Despite this, the USDA forecasts an increase in US corn planting area to 94 million acres, which could lead to a supply surplus and further price reductions.
The soybean market also witnessed a downturn:
• May soybean futures declined to $10.37 per bushel.
Although weekly soybean export sales fell by 14.4% compared to the previous week, they remain higher than the same period last year. China and Egypt were the primary importers.
In South America, the situation appears more optimistic. Argentina’s soybean crops showed improvement, with 24% rated as excellent, a 7% increase from the previous week. The percentage of poor-rated crops declined, potentially indicating strong future production.

European Markets Also Under Pressure
The downward trend continued on the Paris-based MATIF exchange:
• Milling wheat futures dropped to €227.75 per ton.
• Corn futures fell to €219.25 per ton.
Weak export demand and anticipated increased production in the US continue to exert pressure on European markets.

The global grain market remains under pressure due to weak export sales and expanding planting areas. Major global players are closely monitoring market trends, expecting further price adjustments. Over the coming weeks, export activity, weather conditions in the US and South America, and possible market interventions will play key roles in shaping the market's direction.

🔑 Key Takeaways:
• Wheat prices plunged: CBOT futures fell to $206.68 per ton, and export demand hit a five-week low.
• Corn and soybeans declined: Weak exports and forecasts of increased planting areas in the US continue to weigh on the market.
• European markets followed the trend: MATIF wheat and corn prices also saw declines.