Corn rockets to 3-year high as traders eye lower U.S. production
DBA•Broader markets and energy tone
Share markets were flat in Asia on Monday and oil prices eased as investors awaited details of threatened U.S. sanctions on Iran due later in the session, while the Canadian dollar dipped as a trade war loomed with its southern neighbour. MKTS/GLOB
Wheat rises on Black Sea export disruption
Wheat futures also rose as tit-for-tat attacks by Russia and Ukraine continued to curtail exports from Black Sea ports.
- CBOT wheat Wv1 climbed 1.1% to $7.07 a bushel and was within a whisker of July's two-year high of $7.11-1/4.
- Attacks by Russia and Ukraine on each other's shipping routes have brought their grain exports from the Azov and Black Sea basin to a virtual halt. Russia is the world's biggest wheat exporter, and Ukraine is a major supplier.
- CBOT wheat is up 11% so far this month.
Corn hits three-year high on weaker crop outlook
Chicago corn futures shot to a three-year high on Monday, after a tour by analysts of U.S. farm regions last week found that crops were in worse condition than many expected.
- The most-traded corn contract on the Chicago Board of Trade (CBOT) Cv1 was up 2% at $5.18-3/4 a bushel at 0038 GMT after earlier reaching $5.20, the highest since August 2023.
- CBOT corn is now up roughly 12% so far this month.
- U.S. 2026 corn production will fall well below government forecasts, advisory service Pro Farmer said on Friday after a tour of seven major production states that found subpar crops hurt by adverse summer weather.
- Elsewhere, crop ratings for French grain maize stabilised after dropping to their lowest on record during an exceptionally hot and dry summer, data from farm office FranceAgriMer showed.
