Price Movements
The most‑traded corn contract on the Chicago Board of Trade rose 0.8% to $5.2775 per bushel at 1130 GMT, briefly touching $5.30, which represents the highest level since July 2023 and nudges slightly above Tuesday’s three‑year peak. CBOT wheat advanced 1.5% to $7.18 per bushel after reaching that price earlier in the session, marking the highest point since May 2024 and overtaking Monday’s two‑year high. Soybean prices remained unchanged, while a decline in crude oil prices pushed soy‑oil lower, offsetting the gains in corn.
Supply Concerns
The rally in corn prices followed a widely watched Midwest field tour that projected U.S. corn yields to be well below the U.S. Department of Agriculture’s (USDA) current forecast. On the preceding Monday, the USDA indicated that U.S. corn crop conditions had deteriorated more sharply than analysts had expected. Argus analysts attributed the price increase to this new deterioration in crop conditions and the prospect of lower yields, although they noted that a large planted area in Argentina could provide some relief to global supply. The Buenos Aires Grain Exchange reported that the El Niño weather pattern is expected to bring moisture to Argentina, a major corn exporter, but pest risks and higher input costs continue to weigh on farmers’ planting decisions.
Grain loadings at Russian and Ukrainian Black Sea ports have virtually stopped due to tit‑for‑tat attacks in recent weeks, raising doubts about the flow of Ukrainian corn and Russian wheat to international markets.
Market Context
The combined effect of tighter U.S. corn supply expectations, weather‑related uncertainties in Argentina, and disrupted Black Sea export routes contributed to the multi‑year highs observed in both corn and wheat futures on Wednesday.