Corn, soybean and wheat futures closed sharply higher on Wednesday, as escalating Black Sea tensions combined with declining U.S. crop expectations and improving export demand to trigger strong fund buying.
Wheat led the rally – with the December Kansas City contract closing above US$8/bu - after Russian President Vladimir Putin indicated Russia planned to escalate his war on Ukraine. The comments intensified concerns about already-disrupted Black Sea grain shipments and raised the possibility that importers will be forced to turn increasingly to North America and other suppliers. December Chicago wheat jumped 45 cents to $7.48 ¼, and December Kansas City was up 38 cents at $8.08 ¾. December Hard Red Spring was 35 cents higher at $7.59 ¾, and December Minneapolis gained 28 cents to $7.48.
Corn followed wheat higher, while continuing to draw support from deteriorating U.S. crop conditions and hitting fresh three-year highs. USDA on Monday cut the national corn rating to 57% good to excellent, down three points from the previous week. The decline reinforced expectations that USDA may have to further reduce its yield estimate, potentially tightening an already shrinking U.S. balance sheet. Hotter and drier weather forecast for parts of the western Corn Belt and Plains added to those concerns. December was up 13 cents at $5.36 ½, and March was 12 ¼ cents higher at $5.50 ¾.
Soybeans were sharply higher as well, helped by renewed Chinese demand and worries about late-season U.S. weather. USDA confirmed a sale of 333,000 tonnes of U.S. soybeans to China for 2026-27 delivery. November beans climbed 28 ¼ cents to $12.66 and March was 28 cents higher at $12.86 ¼.
