Grain Prices Rally Amid Crop Damage Concerns in China and Europe

Corn futures are rallying in late-week trade, extending gains from Thursday's pause and reaching fresh contract highs. This uptrend is attributed to general buying across the grain and soy complex, as well as concerns over crop quality and yield losses in key growing regions such as China and Europe.

According to Reuters, high temperatures and excessive rain have battered China's corn, soybean, and cotton-growing areas since mid-July. The European Commission has also cut its monthly forecast for usable production of corn in the EU by 1.8 MMT to 50.1 MMT, a new 19-year low.

In the soybean market, futures have pushed to fresh multiyear highs with support from strong gains in both meal and soyoil. The USDA reported significant exports to China and other countries during the 2026-27 marketing year.