Corn and soybean futures closed higher on Thursday, supported by rising crude oil prices and optimism surrounding potential Chinese demand. Wheat was mainly lower on the day.
Energy markets provided underlying support to grains after crude oil rallied following fresh U.S. strikes against Iran, despite ongoing efforts by both countries to negotiate a peace agreement. Expectations that China could soon lower tariffs on grain imports, potentially paving the way for increased purchases of U.S. agricultural products under a previously announced commitment to buy $17 billion worth of farm goods, offered further support. July was up 3 ¼ cents to $4.55 ¾, and December was 4 ¾ cents higher at $4.82 ¼.
Soybean prices also benefited from the improved trade outlook and strength in outside markets. July beans were 9 ¼ cents higher at $11.94 ½, and November closed 12 ½ cents higher at $11.94.
Wheat futures struggled to participate in the rally, with the market feeling pressure from early harvest activity in the southern Plains. July Chicago managed a 1 ½-cent gain to $6.24, but July Kansas City lost 4 ½ cents to $6.65 ¼. July Hard Red Spring eased a ¼ cent to $7.08 ¾, and July Minneapolis fell 3 ½ cents to $6.77 ¼.
The USDA’s weekly export sales report, normally released Thursday, has been delayed to Friday due to this week’s Memorial Day holiday.
