Grain Prices Soar on US Production Issues and Black Sea Uncertainty

The recent rally in grain prices is being driven by production issues in the US and geopolitical uncertainty. The wheat complex saw a sharp increase last week, with December HRW future prices closing at $8.44 on Friday. This is the highest price since the original onset of the conflict between Ukraine and Russia.

Cash prices in Oklahoma hit levels not seen since 2022, with HRW cash prices coming in at $7.82 on Friday before falling to $7.75 on Monday. The potential for holding or follow-through on these price levels remains dependent on developments in the Black Sea and corn production prospects in the US.

The Pro Farmer crop tour yield projection of 173.2 bushels per acre has put bullish sentiment in the market, with December corn futures gaining 26 cents last week to close at $5.31 on Friday.