The world wheat market took a bullish turn over the festive season and that trend has continued during the first full trading week of 2020. The Chicago Board of Trade (CBOT) wheat futures hit highs not seen since last June. Politics, weather and trade have all combined to encourage prices to move higher.
US wheat futures found particular support when Donald Trump's administration confirmed that 'phase one' of the new trade agreement between the US and China would be signed on the 15th of January. Market bulls got very excited by this news, with rumours that China might fulfil its wheat import quota which would allow it to import up to 9.6 million tonnes of wheat in 2020.