Chicago crop futures ended mostly lower on Monday, after a volatile session in which prices initially surged alongside crude oil before retreating later in the day as energy markets pulled back and traders locked in profits.
Early in the session, grain and oilseed markets rallied strongly as crude oil prices spiked to above $100/barrel - the highest since the Russian invasion of Ukraine in 2022 - amid the ongoing Middle East conflict. However, futures faded as oil gains evaporated on reports some countries were planning measures to blunt the strength in oil, in part by tapping reserves.
Corn futures followed that pattern closely. Prices moved higher overnight and early Monday on the strength of surging energy markets. But the market lost momentum later in the session as crude oil fell back into the red, and traders took profits. May corn was down 6 ¾ cents at $4.53 ¾, and December eased 2 ¾ cents to $4.81 ¾.
The wheat market initially gained with the broader commodity complex, supported by geopolitical uncertainty and fund buying tied to the surge in energy prices. However, wheat later came under heavier selling pressure as the session progressed. Traders also cited profit taking and a stronger U.S. dollar as factors weighing on the market. May Chicago fell 13 ½ cents to $6.03 ¼, and May Kansas City lost 3 ¾ cents to $6.19 ¾. May Hard Red Spring managed a 2 ½-cent gain to $6.34, and May Minneapolis was up 3 cents at $6.46.
Soybean futures also started the day higher but could not maintain those gains. The soybean complex had early support from strong vegetable oil markets and expectations that higher crude oil prices could boost demand for renewable diesel made from soybean oil. May beans lost 4 ½ cents to $11.96 ¼, but new-crop November managed to hold onto a 1 ½-cent gain to $11.48 ¼.
