Global wheat prices dropped by 25%, and increased supply will continue to drive this trend.

According to the World Bank, global wheat and corn prices fell to three-year lows in the first quarter of 2024. As a result, global prices for corn and wheat decreased compared to the previous quarter by 11% and 4% and compared to the first quarter of 2023 by 30% and 25%, respectively.

In March, US corn prices fell by 33% compared to March 2023 to $190.6 per ton, while wheat prices fell by 25% to $274.3 per ton. In April, prices continued to fall against the background of an increase in the supply and export of grain.

Significant harvests in the US, the EU, and Russia increased competition in the global market. Ukrainian grain exports are also putting pressure on prices, but due to the small volume of supplies they affect the market much less than the United States, where corn production this year will exceed last year’s figure by 12% and reach 389.7 million tons.