Chicago wheat, corn and soybean futures edged higher on Wednesday, underpinned by weather risks for U.S. crops and uncertainty over talks to end the Iran war, analysts said.
Ample global supply, including large South American corn and soybean crops, was keeping prices in check.
Showers in the coming days could hamper soybean and corn planting, while drought persists in some hard red winter (HRW) wheat areas ahead of possible rain relief next week.
Crude oil prices rose as reports of gunfire attacks on several container ships in the Strait of Hormuz tempered reaction to Washington’s announcement that it would indefinitely extend a ceasefire with Iran to allow for further peace talks.
READ MORE: Chicago wheat extends gains on adverse US weather
“While the situation in the Middle East is still very uncertain, U.S. drought and cold weather continue to threaten U.S. HRW wheat,” Carlos Mera, head of agricultural commodities research at Rabobank, said.
The U.S. Department of Agriculture on Monday rated 30% of the nation’s winter wheat in good-to-excellent condition, down from 34% the previous week and below a range of analyst estimates, as drought and weekend frost stressed crops.
For spring crops, a surge in fertiliser prices driven by the U.S.-Israeli conflict with Iran has added uncertainty over harvest prospects, with farmers weighing high input costs for corn against the crop’s strong yields in recent years.
The Middle East conflict is also influencing crop prices as commodities like corn and soybean-derived soyoil are used for biofuel.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.7% at $11.98-1/2 a bushel, as of 1030 GMT. CBOT wheat added 0.3% to $6.14-3/4 a bushel, while CBOT corn was 0.6% higher at $4.64-3/4 a bushel.
Brisk export demand has also underpinned U.S. corn prices. The USDA on Tuesday confirmed private sales of 100,000 metric tons of U.S. corn to Colombia and 195,000 tons to undisclosed buyers for shipment in the 2025/26 marketing year.
Comments