According to experts from S&P Global Platts, prices for Canadian wheat (Western Red Spring) from February 19 to 27 reached the lowest level in the past six months. This is due to market instability and concerns about possible US trade tariffs against Canada.
Previously, wheat prices were supported by the possibility of a decrease in yields in the US and Russia due to unfavorable weather conditions for crops. However, futures for Canadian wheat WRS plummeted rapidly, reaching a minimum of $257.12 per ton on February 27 - the lowest level since August 2024. Compared to February of the previous year, average monthly prices have decreased by approximately 8%.
The sharp drop in prices prompted Canadian farmers to restrict further sales. Limited opportunities for grain traders in April and May, as well as reduced demand, also contributed to the lower CWRS prices.
Furthermore, current market conditions and expected tariffs have made many producers uncertain about the acreage allocated to new crop grains.