Middle East Conflicts Drive Up Grain Prices Amid Ongoing Tensions
The global grain and oilseed market saw significant price increases due to ongoing conflicts in the Middle East. The region supplies over 60 million tons of fertilizers and raw materials worldwide, with 45 million tonnes shipped through the Strait of Hormuz.
Soybean futures at the Chicago Board of Trade surged on Tuesday, following a sharp spike in crude oil prices. The US launched more strikes on Iran, which doubled already sharp gains in crude oil. The EPA granted 18 small refinery exemptions for 2025 and 11 partial exemptions.
The USDA reported that soybean ratings dropped to 58% good to excellent, while soybeans dropping leaves rose seven points to 13%. The agency also announced a private sale of 136,000 tonnes of 2026/27 soybeans to China. Ahead of the crush report, traders expected 220.1 million bushels of soybeans and 1.88 billion pounds of soyoil stocks.
Corn futures were higher on Tuesday, riding the spillover from crude, soy, and wheat. The USDA pegged corn at 57% good to excellent, unchanged from the previous week. Wheat futures were stronger as Russia pressed further attacks on Ukraine, with the latter striking back at a Russian oil refinery.