Corn, soybean and wheat futures all closed sharply higher on Friday, amid tighter supply prospects, crop tour observations, and escalating geopolitical risks.
Wheat posted the strongest advances as fighting between Russia and Ukraine continued to threaten Black Sea grain exports. Recent attacks have disrupted operations at Russia’s Novorossiysk port and damaged infrastructure around Ukraine’s Danube export system. Russia also rejected a reported Ukrainian ceasefire proposal. September Chicago jumped 22 cents to $6.74 ¾, and September Kansas City climbed 33 ¾ cents to $7.54 ¼. September Hard Red Spring was 7 ¾ cents higher at $6.86 ½, and September Minneapolis closed 9 cents higher at $6.78 ¼.
Corn extended its post-WASDE rally after the USDA earlier this week unexpectedly cut its 2026 U.S. yield estimate to 180.7 bu/acre from 183 bu/acre in July. The reduction was larger than traders anticipated and helped reinforce concerns that production potential may be slipping. Reports from ongoing Midwest crop tours have added to those worries. The gains in wheat offered support as well. September corn was up 11 cents at $4.59, and December gained 11 ¼ cents to $4.83 ¼.
Soybeans joined the rally despite generally favourable U.S. crop prospects. Spillover strength from corn and wheat, technical buying and broader commodity support helped lift the market. A weaker U.S. dollar also provided support to agricultural commodities, while a sharp rise in crude oil reinforced interest in crops connected to renewable fuels. Oil rallied Friday as U.S.-Iran tensions intensified and prospects for an agreement eased. September was 11 ¾ cents higher at $11.77 ¾, and November added 10 ¼ cents to $11.92 ½.
