Global Wheat Demand Supports Improved Price Outlook 2026

Smaller U.S. production and steady global demand could provide better pricing opportunities in 2026.

NASHVILLE, TENN. (RFD-TV) — Wheat prices could see a modest improvement in 2026 as supply fundamentals tighten, even after record global production in 2025. According to Dr. Mark Welch, grain markets economist with Texas A&M AgriLife Extension, strong worldwide demand and the likelihood of a smaller U.S. crop are shifting the outlook compared with the past year.

USDA data show world wheat production reached a record 837.8 million metric tons in 2025, while U.S. yields climbed to an all-time high of 53.3 bushels per acre. However, U.S. wheat acreage has remained steady at around 45 million acres, and weather expectations are becoming less favorable. The winter of 2026 is forecast to be influenced by La Niña conditions, which typically bring warmer, drier weather to the Southern Plains and raise the risk of lower yields.

Domestic wheat use has remained stable for decades, leaving exports as the key swing factor. Global consumption outside major exporting nations continues to exceed production, creating a growing import gap that supports demand for U.S. wheat.

Farm-Level Takeaway: Smaller U.S. production and steady global demand could provide better pricing opportunities in 2026.
Tony St. James, RFD-TV Markets Specialist

As the year comes to a close, U.S. Wheat Associates is reflecting on the wins and challenges of 2025, taking stock of what worked, what did not, and where new opportunities may lie for American wheat producers. In its year-in-review, the organization highlighted growing demand prospects in South America, pointing to the region as a key market to watch in the year ahead. Officials say continued engagement and trade development efforts there could help offset headwinds in other global markets.

Looking ahead to the 2025–26 marketing year, the U.S. wheat crop is projected to total nearly 2 billion bushels. That figure represents a modest increase in overall production compared to the 2024 crop. According to industry experts, the production boost is mainly being driven by strong winter wheat performance. Favorable growing conditions and steady acreage are contributing to the higher outlook, offering cautious optimism for producers heading into the next marketing year.

U.S. Wheat Associates says its focus moving forward will remain on expanding export opportunities, strengthening relationships with international buyers, and ensuring U.S. wheat remains competitive in a challenging global market.

Related Stories
Record yields and exceptionally low BCFM strengthen U.S. corn’s competitive position in global markets.
Water access—not acreage alone—is driving where irrigation expands or contracts.
Mike Steenhoek, with the Soy Transportation Commission, shares his outlook on current grain stocks and transportation lines amid bumper crops filling bins across the United States.
American soybean and corn leaders, along with Canada’s AgriFood sector, testified before the U.S. Trade Representative’s Office in support of the trade pact between the U.S., Mexico, and Canada.
The FAO Food Price Index for November fell by more than 1 percent in November, marking the third straight month of declines.
Higher ocean freight raises export costs just as global grain competition intensifies.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Congressman Adrian Smith of Nebraska joined us with the latest on efforts to secure year-round E15 sales.
Nearly everyone in the South Texas ag community appears extremely worried about the potential of a New World screwworm epidemic, according to a local veterinarian. RFD NEWS Correspondent Frank McCaffrey reports.
Rural population growth and stabilizing economic indicators point to post-pandemic recovery, but uneven income, shifting industries, and regional divides remain key challenges for rural communities.
Large-scale land purchases signal rising competition for ranchland, reinforcing its value while reshaping long-term access and control in rural agriculture.
Brian Earnest, an animal protein economist with CoBank, shares insights into current demand trends and the challenges facing broiler production.
Jack Hubbard, with the Center for the Environment and Welfare, shares context and perspective on the controversial letter about Prop 12 circulating in Washington and how a review shows it misled the public.