Chicago corn and wheat futures fell on Monday amid a sharp break in crude oil. On the other hand, soybeans managed small gains.
The crude market turned sharply lower after U.S. President Donald Trump said he would postpone strikes on Iranian power plants for five days and pointed to constructive talks with Tehran. Although disputed by Iran, the news sent U.S. crude oil futures more than 10% lower, with the May contract trading below $90/barrel as of late afternoon.
The reversal mattered for grains because corn and other row crops have been closely tracking oil during the Iran war through biofuel links and broader inflation-hedge buying. May corn lost 6 cents to $4.59 ½, and December was down 4 ¼ cents at $4.86 ½.
Despite losses today, wheat continued to be underpinned by rising concerns about the winter wheat crop on the U.S. southern Plains. The region has seen bouts of record-high temperatures this spring, with more extreme heat expected around the middle of this week. No significant rainfall is in the forecast for the next week, although some areas may get some relief in late March and early April. May Chicago wheat lost 7 ½ cents to $5.87 ¾, and May Kansas City dropped 3 cents to $6.03 ¼. May Hard Red Spring fell 1 ¾ cents to $6.17 ¾, and May Minneapolis was down a penny at $6.27.
Soybeans held together better than corn and wheat and finished the session slightly in positive territory. The upside was modest, however, as South American supply pressure remained in the background, with Brazil’s harvest nearing two-thirds complete. May added 2 ¼ cents to $11.63 ½, and November gained 5 ½ cents to $11.46 ½.
