Corn and soybean futures ended with solid gains Thursday, riding the coattails of crude oil higher. Wheat was stronger on the day as well.
Crude oil rallied about 5% following new US sanctions on two large Russian oil companies, a move the White House said was in response to the Kremlin’s reluctance to work toward an end to its ongoing war in Ukraine. The move in crude pulled corn and soybeans higher, as both crops are used as feedstocks in biofuel production.
Continued optimism that a face-to-face meeting between US President Donald Trump and Chinese President Xi Jinping at next week’s APEC Summit might help end the trade war between the two countries added to the strength in soybeans. China has so far not purchased any of the 2025 American soy crop, instead sourcing all its needs from South America. November beans climbed a dime to $10.44 ¾, and January was 12 cents higher at $10.62.
Some additional support for corn came from expectations that the USDA will trim its 2025 US average yield estimate from the current 186.7 bu/acre. The ongoing US government shutdown scuttled the October WASDE report and is now threatening the November report. December corn was up a nickel at $4.28, and March added 5 ½ cents to $4.41 ¼.
Wheat futures were buoyed by signs of international demand, with Algeria’s state grains agency reportedly purchasing about 600,000 tonnes this week. December Chicago wheat gained 9 ¼ cents to $5.13 and December Kansas City was 11 ½ cents higher at $5.00. December Hard red Spring was up 8 ¾ cents to $5.40 ¾, and December Minneapolis 10 ¼ cents higher at $5.58.
