Corn and Wheat Prices Soar Amid US Crop Yield Worries and Black Sea Export Disruptions
The prices of corn and wheat have reached multi-year highs on the Chicago Board of Trade due to concerns over US crop yields and disruptions in Black Sea grain exports.
Falling expectations for US corn yields, coupled with ongoing issues at Russian and Ukrainian ports, have contributed to the surge. The most-traded corn contract was up 0.8% at $5.27-3/4 a bushel, while wheat futures rose 1.5% to $713-1/2 a bushel.
A widely followed Midwest field tour last week projected this year's US crop well below the USDA's current forecast, further fueling concerns over corn yields. The El Niño weather phenomenon is expected to bring moisture to Argentina, but pest risks and higher costs may weigh on farmers' plans.
Repair works at NKHP, one of three grain terminals at Russia's main Black Sea export port of Novorossiysk, could take up to four months, casting doubt over the prolonged disruption. The situation in the Black Sea remains complex, and Argus analysts warn that 'the announcements on both sides confirm a blocked and complex situation for the flow of agricultural production at the beginning of the campaign.'