Grain Markets Volatile Ahead of USDA Report

Grain markets are experiencing volatility as traders monitor conflicts in the Black Sea region and prepare for the US Department of Agriculture's supply-and-demand report due this Friday. The Chicago Board of Trade corn futures fell 0.8% to $5.29-1/4 a bushel, while soybeans dropped 0.5% to $13.10-1/4 a bushel.

The USDA reported last Friday that 5% of the US corn crop had been harvested, with 56% of the crop in good-excellent condition. However, market participants are cautious about the risks of prolonged interruptions to Russian and Ukrainian grain exports from the Black Sea region.

Commodity Weather Group forecasts warmer and drier weather in the US Midwest over the coming weeks, which should limit harvest slowdowns and frost risks. Meanwhile, StoneX lowered its estimate of the average US 2026 corn yield to 182.9 bushels per acre from 184.8 in its previous report.