Wheat prices are rising due to deteriorating crop conditions in the United States and signs of increasing demand.

The price of wheat futures rose as the unexpected deterioration of wheat crops in the United States rekindled buying interest in the market, just as the new season is set to begin in July. According to data released by the US Department of Agriculture on Monday, as of the week ending June 15, the proportion of winter wheat crops rated as good to excellent decreased to 52%, down 2% from the previous week. The market had previously expected crop conditions to remain stable, as analysts at the Hightower Report wrote in their report. Major wheat buyers Tunisia and Algeria have recently issued tenders to purchase wheat, aiming to ensure supply for the upcoming new season. Chicago soft red winter wheat and hard red winter wheat futures both rose over 1% on Tuesday.