Soy, wheat, corn set for second annual drop despite late gains

Chicago soybean, wheat and corn futures were set for second straight annual declines on Tuesday as world supplies remained ample, though weather concerns helped prices regain some ground at the year’s end.

Forecasts of dry conditions for corn and soy crops in Argentina as well as poor early growth for Russian wheat could underpin grain markets in early 2025, but expectations of record soybean output in top supplier Brazil are likely to keep a lid on prices of the oilseeds.

Trade flows are another question mark for grains, as they do for wider markets next year, with Donald Trump’s return to the White House poised to generate new tariffs and top wheat exporter Russia seeking to curb shipments.

Soybean, wheat and corn edged higher on Tuesday in light holiday trading, supported by an easing of the dollar index.

By 1202 GMT, the most active soybean contract on the Chicago Board of Trade (CBOT) was up 0.5% at $9.96-1/2 a bushel, wheat 0.5% higher at $5.50-3/4 a bushel and corn 0.6% up at $4.54-3/4 a bushel.

Over the year, the soybean benchmark was down 23%, wheat 12% lower and corn 3.5% off.

All three crops hit their lowest levels since 2020 over the course of this year, with soybeans returning to that trough in mid-December as beneficial rain increased prospects of a record Brazilian harvest in early 2025.

Tags: corn, prices, soybeans, wheat, futures