Canadian wheat prices struggle amid tariff uncertainty and global competition

Published Feb 18, 2025

Tridge summary

The Canadian Western Red Spring wheat market is experiencing low prices due to uncertainty caused by tariffs and contract changes, with prices falling after a pause on tariffs was announced. The market is also facing competition from high-protein wheat supplies from Australia and South America, and the recent USDA World Agricultural Supply and Demand Estimates have put downward pressure on the market. However, clarification on tariffs after the pause, along with a rebound in the Canadian dollar, could aid in market recovery.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The Canadian Western Red Spring wheat market continues to face low prices amid a slowdown in activity from ongoing uncertainty surrounding tariffs and contract changes. Since President Trump’s last-minute announcement of a pause on tariffs on Jan. 31, market participants have adopted a cautious approach, waiting to for clearer information on tariff outcomes and prices fell in response Platts, part of S&P Global Commodity Insights, assessed CWRS prices leading up to the announcement at $275.21 on Jan. 30 and $273.38 on Jan. 31 then $267.68 on Feb. 3. Compounding this uncertainty, MIAX announced plans to migrate its trading data from CME’s Globex platform to its own platform, ONYX, while CME is set to launch its own competing wheat contracts. According to some sources, the transition may prompt some traders to shift away from the MIAX contract, leaving the market in a state of limbo until MIAX’s exit from CME on June 30. CWRS prices have been on the decline since June 2024, with ...

Source: UkrAgroConsult