The newly elected US President Trump seemed to positively impact wheat prices, despite fears that tariffs on imported goods would harm US export potential.
Chicago Board of Trade (CBOT) wheat futures gathered pace on Tuesday, gaining almost 4% by the close and posting its biggest single daily gain since 20th May last year. The price rally was perhaps less Trump driven, though lack of immediate tariffs for China was a positive sign for US agricultural markets. Speculative fund short covering was driven by fears of exposed US winter wheat crops suffering from winter kill, with extreme cold extending across the Plains as far as Kansas.