CHICAGO: US wheat futures eased on Friday after a drought-fuelled rally the previous day as traders assessed chances for rain relief in the parched US Plains wheat belt and prospects for de-escalation in the Middle East.
Corn futures closed mixed after four days of gains while soybeans edged higher as investors assessed potential rain delays to US planting and harvest prospects in South America.
Grain markets remained sensitive to volatile crude oil markets and developments in the Middle East. Oil prices fluctuated between negative and positive territory on Friday as traders weighed supply disruptions against the potential restart of US-Iran peace talks. Corn and soybeans, both major biofuel feedstocks, have been riled by soaring oil prices and the closure of the Strait of Hormuz, a key outlet for fertilizer.
Traders were closely following forecasts for rain across the central United States as storms are expected to stall corn and soybean planting, while wheat growers in the Plains would welcome precipitation that could boost stressed crops. Drought conditions worsened over the past week in central and western Nebraska and in central and western Kansas, according to the latest US Drought Monitor report.
“We’re going to get some rains in Kansas and Nebraska Saturday, Sunday and Monday. We’ll see how heavy those rains are, but they should help a little bit,” said Mark Gold, an analyst with StoneX. Chicago Board of Trade July soft red winter wheat was down 3-1/2 cents at USD6.16-3/4 after touching a 3-1/2-week high earlier in the session.
The contract gained 2.9percent in the week. K.C. July hard red winter wheat dropped 10-3/4 cents to USD6.68-1/2 a bushel after touching the highest point since June 2024. CBOT July corn was 1/4 cent lower at USD4.63-1/2 a bushel but finished the week up 1.3percent. July soybeans settled 3-3/4 cents higher at USD11.78-1/2 a bushel but ended the week down 0.4percent.
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