Corn Cv1 traded at a three-year high on a poor U.S. crop and spillover strength from wheat. Soybeans Sv1 hit their highest in more than two-and-a-half years on a biofuels announcement the previous day that was regarded as bullish for the oilseed, continued Chinese purchases of U.S. soybeans and concerns over hot, dry weather damaging the U.S. soybean crop.
The most-traded wheat contract on the Chicago Board of Trade settled 8-1/2 cents higher to $7.82-1/2 per bushel. It hit $7.92-1/4 a bushel in earlier trade, the highest level since February 15, 2023.
CBOT corn Cv1 settled 8.25 cents higher to $5.46 per bushel while soybeans Sv1 settled 29-3/4 cents higher to $13.17 per bushel.
Biofuels policy and crop conditions
The U.S. Environmental Protection Agency on Monday granted small refinery exemptions worth 1.76 billion renewable fuel credits for the 2025 compliance year and said it will propose reallocation of waived obligations to larger refiners in future years.
Oil prices jumped about 4% to a one-week high on Tuesday as a resumption in fighting between the U.S. and Iran renewed fears of supply disruptions from the Middle East. [O/R]
The oilseed market often follows movements in crude oil because soybeans are commonly used as a feedstock for biofuel.
The U.S. Department of Agriculture lowered its condition rating for the country's soybean crop in a weekly report on Monday. The agency rated 58% of the crop in good-to-excellent condition, down from 60% a week earlier. For corn, the USDA said 57% of the crop was in good-to-excellent condition, unchanged from a week earlier.
Wheat hits three-and-a-half-year high
Chicago wheat futures hit a three-and-a-half-year high on Tuesday on reports that Moscow had rejected a moratorium on attacks in the Black Sea and struck port infrastructure in the region overnight, analysts said.
Futures reversed earlier weakness that followed a statement by Turkey that it was in contact with Russia and Ukraine about grain shipping via the Black Sea.
Black Sea tensions keep grain supplies uncertain
Russia attacked Ukraine's port infrastructure and a border crossing with Romania in the southern Black Sea region of Odessa overnight, Ukrainian officials said on Tuesday.
Ukrainian President Volodymyr Zelenskiy said the strike deliberately damaged a crossing point on the border with Romania as well as export infrastructure.
The escalating tensions have cast uncertainty over global grain supplies. Attacks in recent months have halted almost all grain shipments through Black Sea ports and the Sea of Azov, which used to account for 70% of all Russian grain exports. Traders remain on edge about the risks of prolonged interruption to both Russian and Ukrainian grain exports from the region.
Prices had fallen after Turkey said on Monday that it had prepared a plan for the safe passage of grain via the Black Sea. But Russia rejected a moratorium on attacks in the Black Sea, saying it would not bring the prospect of a peaceful resolution to the war any closer, Interfax reported on Tuesday, citing Deputy Foreign Minister Alexander Grushko.
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