Corn, wheat and soybean futures all settled higher on Friday, supported by escalating geopolitical tensions in both the Black Sea region and the Middle East, along with a sharp rally in crude oil.
Crude oil and gasoline prices rallied sharply on Friday, with crude reaching a five-week high and gasoline climbing to a two-month high. Energy markets surged amid growing fears that escalating hostilities between the United States and Iran could develop into a wider war and threaten oil shipments through the Strait of Hormuz.
Wheat posted gains as continuing attacks involving Russia and Ukraine added uncertainty to grain movement from the Black Sea. Concerns about damage to ports, vessels and other export infrastructure helped maintain a risk premium in the market, with traders increasingly focused on the possibility that disruptions could restrict shipments from two of the world’s most important wheat-exporting countries. September Chicago was up 8 cents at $6.82 ¾, and September Kansas City gained 15 ¾ cents to $7.32 ¼. September Hard Red Spring added 9 ¾ cents to $6.98, and September Minneapolis ended 6 ½ cents higher at $6.91 ¾.
Corn futures also moved higher, drawing support from the broader strength in grain and energy markets. Black Sea shipping risks raised questions about future global feed grain availability, while sharply higher crude oil improved the outlook for ethanol demand and provided additional support to corn prices. September nudged up 3 ¼ cents to $4.44 ¾, and December closed with a 3 ½-cent gain at $4.67 ½.
Soybeans advanced alongside strong gains in Chicago soybean oil. The surge in crude oil strengthened vegetable oil markets by improving the competitiveness of biofuel feedstocks, helping lift soyoil and providing spillover support to soybeans. August beans were 9 ½ cents higher at $12.04 ½, and November ended with an 8-cent gain to $12.03.
