Corn Hits Two-Week High as Iran War Threatens Fertilizer Supply

Corn futures rose to a two-week high amid fertilizer supply disruptions caused by the effective closure of the Strait of Hormuz, raising doubts about the size of the upcoming US crop.

The most-active contract climbed 1.1% on Monday after US President Donald Trump over the weekend threatened to escalate the war with Iran if the crucial trade route was not reopened within 48 hours.

The Middle East is a major global exporter of fertilizers, and nutrient prices have surged since the conflict began. As long as fighting continues, fertilizer supplies from the region will remain constrained, creating yield risks for the upcoming US corn crop, said Tobin Gorey, a strategist at Cornucopia Agri Analytics.

According to him, the impact on southern summer crops — particularly in Argentina and Brazil — is likely limited. The greater effect will be on crops planted next month — in April and May — including Northern Hemisphere producers like the United States.

Meanwhile, the May contract’s discount to December has also widened since the start of the war. Gorey noted this may indicate that traders are already buying new-crop corn in anticipation of lower yields, further supporting prices in the longer term.

Tags: corn, prices