Chicago | Reuters—Chicago Board of Trade corn futures reached a 16-month high above $5 a bushel on Tuesday on robust U.S. export demand and expectations that inventories may tighten, analysts said.
Wheat futures touched their highest price since October, while soybean futures also advanced on spillover support from corn’s gains.
Rising crop prices benefit farmers after markets slumped to 2020 lows last year due to oversupply.
Traders have been watching to see whether the most active corn contract Cv1 would exceed $5, a key price level, and said farmers will likely increase sales of their crops to take advantage of the rally.
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U.S. wheat futures closed higher on Thursday on concerns over the limited availability of supplies for export in Russia, analysts said.
Strong demand for U.S. corn has not slowed following price gains this winter, said Arlan Suderman, chief commodities economist for brokerage StoneX.
The U.S. Department of Agriculture reported that 1.6 million metric tons of corn were inspected for export last week, beating analysts’ estimates for 975,000 to 1.4 million metric tons.
Additional support for prices came from relief that U.S. President Donald Trump has not yet unleashed tariffs that are disrupting agricultural trade, analysts said. Negotiations over trade tariffs could even lead some importers to buy more U.S. grain and soy, they said.
“The tariff push is going to be more like, ‘Buy America and buy more grain,” said Don Roose, president of brokerage U.S. Commodities.
CBOT March corn futures CH25 closed 5-3/4 cents higher at $5.02 per bushel and reached the highest price for a most-active contract Cv1 since October 2023.
CBOT March wheat WH25 ended up 4-3/4 cents at $6.04-3/4 a bushel, while March soybeans SH25 rose 2-1/2 cents to $10.38-1/2 a bushel.
Corn supplies are expected to tighten in the coming months but soybeans are projected to be plentiful.
U.S. soy processors crushed their second-largest volume of soybeans ever in January, according to National Oilseed Processors Association data.
In Argentina, a major soy and corn supplier, weekend rains helped to prevent further losses to drought-hit crops, the Rosario grains exchange said.
Traders are also watching weather conditions in Russia and the U.S., where cold temperatures could damage wheat crops, analysts said.
—Reporting by Tom Polansek in Chicago, Peter Hobson in Canberra and Sybille de La Hamaide in Paris
