Global Wheat Prices Soar After Unexpected Drought in Canada

• 14 May, 2025

A devastating drought sweeping across Canada’s primary wheat-growing regions has crippled this year’s harvest, triggering an unprecedented surge in global wheat prices. The Prairies—covering Alberta, Saskatchewan, and Manitoba—have seen rainfall levels drop by over 60% compared to historical averages. Crop yields are expected to fall by nearly 40%, marking one of the worst harvests in decades.

As Canada accounts for roughly 13% of global wheat exports, the supply shock is already being felt in major importing countries. Egypt, one of the world’s top wheat buyers, has signaled emergency import contracts, while countries like Bangladesh and Indonesia are reevaluating their food security strategies. Food price inflation is expected to hit poorer economies hardest, especially those already under stress from geopolitical conflicts or unstable currency exchange rates.

Economists and climate scientists alike point to this event as another stark warning of the economic vulnerabilities created by climate change. “We’re seeing the intersection of environmental instability and global trade dependency in real time,” said Dr. Lena Ortiz, a climate risk analyst. The Canadian government has announced support for affected farmers, but experts warn that without long-term water management reforms, such events may become increasingly frequent.