Corn, Wheat, and Soybean Futures Hit Multi-Month Highs

Corn, wheat, and soybean futures on the Chicago Board of Trade (CBOT) reached their highest levels in several months by midweek. A weaker US dollar and a stable trade environment with major economies, including China, provided support. Poor weather conditions in South America further fueled price gains. However, technical resistance limited the rally.

Highest Level of Corn Future Price

Corn futures rose 0.30% to USD 4,96 per bushel, briefly touching USD 4,98-1/2, the highest level since October 2023. This level remains just above last week's 15-month high.

Soybean futures initially climbed but later slipped 0.20% to USD 10,72-1/2 per bushel. Before turning negative, soybean prices had hit their highest point since late July. The previous session also saw them breaking a six-month high.

Wheat futures gained 0.70%, settling at USD 5,80-3/4 per bushel. Earlier, prices hit their highest since late October, while the previous day saw a 30-month peak.

Trade War Concerns in Global Market

Uncertainty over trade policies continues to affect market sentiment. There are concerns that US agricultural exports could suffer if other nations impose tariffs in response to those introduced by former US President Donald Trump on Canada, Mexico, and China. While Trump recently postponed tariffs on Mexico and Canada for a month, Beijing announced limited retaliatory tariffs on US goods. However, key agricultural exports like soybeans were left off the list, easing immediate concerns.

Some traders remain optimistic that China, the world’s largest soybean importer, might increase purchases from the US as negotiations continue. A Singapore-based grain trader noted that while some fear an overall decline in trade, corn and soybeans are still receiving strong support from adverse weather conditions in Argentina and Brazil.

Weather Disruptions in South America

Dry conditions in Argentina and excessive rainfall in Brazil have slowed soybean harvesting, causing delays in corn planting. These factors continue to support prices for both commodities.

Additionally, the US dollar index fell for the second consecutive day, making US agricultural exports more attractive in global markets. The weakening dollar has further contributed to firming prices for American grains.

Conclusion: Market Remains Volatile with Uncertain Trade and Weather Factors

Corn, wheat, and soybean prices have strengthened due to supply concerns and favorable currency movements. While a weaker US dollar and poor weather in South America continue to provide support, trade uncertainties could pose risks in the coming weeks. If China increases soybean purchases, the market may see further gains. However, any policy changes or a shift in global demand could quickly alter price trends.

For traders and buyers, keeping an eye on US-China negotiations, weather developments in Argentina and Brazil, and currency fluctuations will be crucial. With continued price volatility, strategic decision-making will be key to navigating the grain and oilseed markets in the months ahead.





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