Resumption of shipping through the Strait of Hormuz supports soybean and corn prices

Soybean and corn futures on the Chicago Board of Trade moved higher as shipping traffic through the Strait of Hormuz gradually resumed, boosting demand prospects for grains and oilseeds from Persian Gulf countries. The region is heavily dependent on food imports, making improved logistics a positive factor for agricultural markets.

The most-active soybean contract rose by 0.7% to $11.49 per bushel, while corn futures also gained 0.7%. As of the morning of June 23, soybeans were trading at $11.46 per bushel and corn at $4.41 per bushel, while wheat prices remained largely unchanged.

Market sentiment was further supported by reports of early progress in negotiations between the United States and Iran aimed at ending the conflict in the Middle East. The war has unsettled agricultural markets in recent months by driving up energy and fertilizer costs, increasing concerns about global grain production.

Additional support came from comments by U.S. Vice President JD Vance, who said that any unfrozen Iranian assets could potentially be used to purchase American agricultural commodities. According to Vance, such funds could be directed toward imports of U.S. soybeans, corn, and wheat, creating new opportunities for American exporters.

Meanwhile, corn prices continued to strengthen in Europe. Paris corn futures advanced for a sixth consecutive session, rising 0.8% to €222.75 per tonne. The gains were driven by a heatwave affecting France and other parts of Western and Central Europe, raising concerns about potential crop damage to both corn and wheat.

Tags: corn, prices, soybean, wheat