Corn and wheat futures on the Chicago Board of Trade (CBOT) surged to multi-year highs on Wednesday, driven by deteriorating U.S. crop conditions and supply disruptions in the Black Sea.
CBOT corn futures climbed 0.8% to $5.273/4 per bushel by 08:30 ET, after reaching an intraday peak of $5.30. The contract marked its highest level since July 2023, slightly exceeding the three-year high set on Tuesday. The advance followed a sharp downgrade in U.S. corn crop conditions by the U.S. Department of Agriculture (USDA) on Monday, which analysts noted exceeded expectations. Earlier in the week, a widely tracked Midwest crop tour projected this year’s U.S. corn harvest well below USDA forecasts.
Wheat futures rose 1.5% to $7.131/2 per bushel, hitting an intraday high of $7.18—their strongest level since May 2024. The rally extended gains from Tuesday’s two-year peak. Analysts at Argus cited further crop deterioration and lower yield expectations as key drivers, though they noted potential supply relief from Argentina’s large planted area.
In Argentina, the Buenos Aires Grain Exchange reported that the El Niño weather pattern is expected to bring moisture to the country, a major corn exporter. However, pest risks and elevated production costs are limiting farmers’ planting plans. Meanwhile, grain shipments from Russian and Ukrainian ports in the Black Sea have effectively halted due to recent mutual attacks, disrupting flows of Ukrainian corn and Russian wheat.
Soybean prices remained broadly stable as gains in corn were offset by a decline in crude oil, which weighed on soybean oil values.
