CHICAGO: US wheat futures rallied to a one-year high on Friday as worries about a US-Iran military conflict sparked short covering by funds that hold large short positions in the market.
Corn scaled a seven-week top, fuelled by technical buying and spillover support from wheat.
Soybeans rose to a 20-month peak as investors weighed likely strong demand from biofuels makers against uncertainty about purchases by top importer China and a likely record harvest in Brazil.
Commodities markets have been unsettled as investors fretted about inconclusive talks on Thursday between Washington and Tehran, despite mediator Oman’s talk of progress.
Other markets are taking cues from crude oil, which rose 2percent.
“People remember the Russian-Ukraine invasion when wheat took off to ten dollars.
The funds are caught short and I think this is one of those ‘seller beware’ situations going into a weekend where anything could happen,” said Don Roose, president of US Commodities.
Chicago Board of Trade May wheat futures were 17 cents higher at USD5.91-1/2 a bushel after touching the highest point for a most-active contract since February 2025.
Buying accelerated as the contract topped a high posted on Monday, ending up 1.9percent for the week. CBOT May corn was 5 cents higher at USD4.48-1/2 a bushel after breaking through technical chart resistance at its 100- and 200-day moving averages, ending the week up 2percent.
May soybeans were 7-1/4 cents higher at USD11.70-3/4 a bushel, gaining 1.5percent in the week. Soybeans remained underpinned by recent bullish biofuels news and hopes that China would book more US shipments, although a record harvest in rival supplier Brazil capped gains.
A Reuters report on Thursday, which said the US administration plans to require big oil refineries to make up for at least half of the biofuel blending exemptions, reinforced expectations that upcoming revisions to US biofuel policy will boost demand for feedstocks like soyoil.
But Chinese demand for US soy remained unclear after a Supreme Court ruling against some US tariffs prompted President Donald Trump to introduce other levies.