Conflicts Drive Up Grain and Oilseed Prices Worldwide
The global grain and oilseed markets have seen significant price increases due to conflicts in various regions. The US launched more strikes on Iran, which led to a sharp spike in crude oil prices. This increase in oil prices has had a ripple effect on other commodities, including soybeans, corn, and wheat.
Soybean futures at the Chicago Board of Trade were stronger on Tuesday following these events. The USDA announced a private sale for 136,000 tonnes of 2026/27 soybeans to China. This news came ahead of the crush report, which estimated an average trade guess of 220.1 million bushels of soybeans with soyoil stocks at 1.88 billion pounds.
The conflict between Russia and Ukraine has also impacted wheat prices. Russia's attacks on Ukraine have resulted in a decline in wheat production. ABARES projected its wheat production to fall 17% in 2026-27 to 29.9 million tonnes, which would be three per cent above the 10-year average.
The US spring wheat harvest has progressed 15 points at 77% complete, nine points above the five-year average. However, Russia has rejected Turkey's proposal to move grain out of Black Sea ports, further exacerbating the situation.