Grains and oilseeds are sharply higher on Monday following the overnight session. Escalating tensions between the U.S. and Iran continued to boost the grain market.
CORN
A sharp two-day surge late in the week landed May corn futures 12 cents higher last week to $4.60 ¼ a bushel. Open interest was 6,157 contracts higher, while volume was a record for the contract, suggesting real buyers stepping in after recent short-covering.
Prices punched through the top end of their trading range from the fall and early winter, rising to the highest in more than 8 months overnight. December prices tested resistance just below $5 but faced selling pressure just shy of the level.
Crude oil prices continued to lead corn and other grains and oilseeds sharply higher to start the week. The market has been pricing in more risk amid expectations of higher demand for ethanol.
Tomorrow’s WASDE report is not expected to shake up the markets. The pre-report estimates were posted on Friday for the grain markets.
AgRural reported that Brazil’s Safrinha corn planting reached 82 percent complete as of last week. Progress is the slowest since 2022. The firm noted that there is concern in some areas of Paraná and Mato Grosso do Sul due to the lack of moisture.
SOYBEANS
May soybeans experienced strong weekly gains of 30 cents last week to finish at $12 on Friday. Prices continued their rally in the overnight session after a gap open higher in the overnight session.
Soybean oil futures surged more than 4 percent higher at last night’s open amid the spike in energy prices. Major vegetable oil competitors also saw similar price spikes.
The March Prospective Plantings report at the end of the month could draw more attention to the possibility of soybeans buying more acres after the recent surge.
On a side note, soybean meal futures in China hit limit-up overnight.
AgRural reported that half of Brazil’s soybean harvest was complete as of last week. Progress remained 10 percentage points behind last year’s pace.
WHEAT
Sharply lower prices to start the week ended with a surge in wheat prices last week. The May Chicago contract gained 25.25 cents to close above the $6 level. Prices broke above the 200-day moving average, which was expected to act as resistance.
Sharp gains in corn and soybeans flipped the script on the pressure in the wheat market. Prices have now rallied the most since 2024. Wartime premium continued to build in the market despite bearish fundamentals.
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