“There is concern about HRW wheat in the U.S. that is underpinning prices, although the crop situation is far from irreversible,” Poncelet added.

Furthermore, there is increased demand for higher-quality grain following a diminished U.S. winter wheat crop and as dry weather reduced yield potential for wheat in Europe and Russia, Reuters reported.

Wheat and other soft commodity prices have weakened earlier this year on heightened trade war concerns, especially after President Donald Trump amped up his protectionist rhetoric. However, while Trump has stood behind his decision to impose tariffs on a broad array of goods, the president has promised to aid farmers hindered by retaliatory tariffs imposed on U.S. grains.

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