Key Takeaways
- Chicago Board of Trade soybean futures rose due to higher soyoil costs.
- USDA projected smaller-than-expected world inventories of grains and oilseeds.
- Traders are monitoring the Black Sea grain region amid supply concerns.
Soybean prices on the Chicago Board of Trade (CBOT) saw an increase, with the most-active soybeans contract rising by 0.5% to $11.96-3/4 a bushel as of 0210 GMT. This rise was driven by higher soyoil costs and intensified fighting in the Persian Gulf, which sent crude oil prices surging.
The United States Department of Agriculture (USDA) released projections indicating smaller-than-expected world inventories of grains and oilseeds. The soy ending stocks forecast remained unchanged at 310 million bushels, while corn ending stocks were projected to be lower than expected at 2.020 billion bushels for the 2025/26 marketing year.
Wheat prices also climbed, with a gain of 1.1% to $6.47 a bushel. The USDA further projected that U.S. farmers would harvest the smallest wheat crop in 56 years, lowering its forecast of global wheat supplies remaining at the end of the 2026/27 marketing year to 272.84 million metric tons.
The rise in oil prices was a significant factor influencing commodity markets. Iran’s expansion of strikes on Gulf states following U.S. attacks and its claim to have closed the Strait of Hormuz contributed to this surge, with crude oil prices jumping accordingly.
Traders are closely monitoring the Black Sea grain region due to recent events. Russia temporarily stopped shipping through the Don-Azov channel after a Ukrainian attack on 13 Russian vessels in the Sea of Azov on Friday. This development adds to supply concerns and market volatility.
In Argentina, farmers were selling unusually little of their new wheat crop despite quick planting progress, according to the Rosario grains exchange. Lower forward prices and growing concern about future supplies are contributing factors to this unusual behavior.
Commodity funds were net buyers of CBOT corn, wheat, and soy futures on Friday, indicating a bullish sentiment in these markets. This buying activity further contributed to the upward pressure on grain prices.
