US Grain Belt Flooding Pushes Corn, Soybean Prices Higher

Corn and soybean prices rose on the Chicago Mercantile Exchange last week, as heavy rainfall in the eastern US grain belt led traders to price in reduced yield forecasts. September corn closed up 6 cents, while December corn was up 6 1/4 cents. September soybeans closed up 23 1/4 cents and November soybeans were up 23 1/2 cents.

The heavy rainfall, which would normally be welcome ahead of filling for corn and soybean crops, has given rise to flooding and quality concerns. Traders are pricing in increased chances of further reductions to yield forecasts in future USDA reports, offsetting the bearish increase to acreage noted in last week's update.

Wheat futures struggled to build momentum despite no sign of de-escalation in the Black Sea conflict. Seasonal pressure may weigh against prices in the short-term, but bullish arguments are beginning to outweigh bearish counterpoints ahead of the typical seasonal low for row crops.