Corn and wheat futures traded at multi-year highs on Wednesday as adverse weather conditions and logistical disruptions tightened global grain supplies.
Corn futures on the Chicago Board of Trade advanced 0.8% to $5.27-3/4 per bushel at 1130 GMT, after earlier reaching $5.30, the highest level since July 2023. The gains followed a sharp downgrade to U.S. crop conditions reported by the U.S. Department of Agriculture on Monday, which fell more than analysts anticipated. A recent Midwest field tour further reinforced expectations that the U.S. corn harvest will fall short of current USDA projections.
Wheat futures climbed 1.5% to $713.50 per bushel, touching $7.18 during the session, the strongest since May 2024. The rally extended gains from Monday’s two-year high, as traders assessed tightening supplies amid reduced Black Sea grain loadings. Shipments from Russian and Ukrainian ports have nearly halted in recent weeks due to escalating port attacks, disrupting the flow of Ukrainian corn and Russian wheat.
Analysts at Argus noted that deteriorating U.S. crop conditions and lower yield prospects were the primary drivers of the corn rally, though potential supply relief could emerge from Argentina, where the Buenos Aires Grain Exchange expects El Niño to bring moisture to key growing regions. However, higher input costs and pest pressures may limit the upside for Argentine farmers. Soybean prices remained steady as gains in corn offset declines in soyoil linked to lower crude oil prices.
