Wheat and corn futures led the way on Wednesday – rebounding from the previous day’s losses – as Chicago crop futures closed higher on Wednesday.
Corn futures posted gains as more strength in crude oil markets amid the conflict in Iran lent broader support to the commodity sector. U.S. crude oil was trading above $88/barrel late this afternoon, versus the sub-$70 levels prior to the start of the Iran war in late February. May corn gained 8 cents to $4.60 ¼, and December was 9 ¼ cents higher at $4.89.
The strength in corn helped to pull wheat higher, with further strength in the market attributed to broader geopolitical instability that has prompted speculative buying across commodity markets. May Chicago was 3 ¾ cents higher at $5.94 ¾, and May Kansas City was up 4 ¾ cents at $6.13 ½. May Hard Red Spring added 5 ½ cents to $6.28, and May Minneapolis closed 3 cents higher at $6.38.
Soybeans were buoyed by gains in soyoil, which has been supported by higher crude oil prices and expectations for stronger biofuel demand. Traders also reacted to the USDA’s latest adjustments in global supply estimates, including a reduced production outlook for Argentina. May beans gained 12 ¼ cents to $12.14, and November was 9 ¾ cents higher at $11.63 ¼.
