Wheat, corn and soybean prices rose in Chicago on Wednesday

Wheat, corn and soybean futures closed notably higher in Chicago on Wednesday, August 19. September SRW wheat rose 2.37% to $249.94/t, September corn gained 2.11% to $186.22/t, while November soybeans increased 1.69% to $454.60/t. Grain markets were supported by disruptions to Black Sea exports, while corn and soybeans also reacted to the latest results from the ProFarmer Crop Tour in the US.

Wheat is receiving increasing support from reduced grain availability from the Black Sea region at a time when seasonal shipments would normally accelerate. Amid restrictions at Russian Black Sea ports, the estimate for Russia’s August wheat exports was cut to 1.8 mln tons, 2.5 times lower than a year earlier, potentially the lowest August volume since 2010. Against this backdrop, Kansas City HRW wheat rose to $279.98/t, while Minneapolis spring wheat reached $255/t.

Corn futures advanced following weaker crop tour results in key US producing states. ProFarmer estimated Nebraska corn yields at 163.61 bushels per acre, down 8.85% from last year and 5.6% below the three-year average. Indiana yields were estimated at 183.54 bushels per acre, down 5.3% year-on-year and 2.1% below the three-year average.

Soybeans were also supported by the Crop Tour results. Nebraska’s average soybean pod count was estimated at 1,219.62 per acre, down 9.54% from last year, while Indiana recorded 1,318.64 pods per acre, 4.21% below last year’s level. November soybean futures consequently climbed to $12.37-1/4 per bushel, or around $454.6/t.

The rally also extended to European grain markets. On MATIF, September wheat rose to €227.25/t, while November corn advanced to €258/t. The combination of growing risks to Black Sea supplies and weaker US crop assessments therefore provided renewed support to major grain and oilseed markets.

Tags: futures, Chicago, corn, prices, soybean, wheat