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Wheat Could Be Surprise Winner of the U.S.-China Trade Deal

  • Filling China’s wheat quotas creates new demand for the grain
  • Soy buying will likely be hit by spread of deadly swine fever
Photographer: Daniel Acker/Bloomberg
Updated on

In the agriculture world, news of the partial U.S.-China trade deal has sparked a lot of buzz about soybeans. It turns out, wheat could actually end up being a bigger surprise winner.

Speculation is mounting that China will work to fill its wheat-buying quota as part of the detente, a pledge it failed to stick to in the past. While the allotment, set by the World Trade Organization, could be filled by supplies from any country, it still means additional global demand at a time the market is tighter.