Wheat Prices Soar on Russia-Ukraine Conflict Uncertainty
Uncertainty surrounding the conflict between Russia and Ukraine drove US wheat prices to new highs on Friday, with Chicago soft and Kansas City hard red varieties experiencing the largest gains. The Ukrainian agricultural ministry reported that the country's grain planting in 2027 could be significantly lower than the previous year, with estimates suggesting a decline of over 25%.
The USDA also released data showing total wheat export sales commitments for the 2026-27 crop year at 8.342 million tonnes, down 32% from the same period last year. Meanwhile, soybean prices continued to rise for the fourth consecutive session, boosted by Chicago soyoil and expectations of increased biofuel quotas.
The White House is considering raising biofuel quotas by 500 million gallons in 2027 to offset the higher-than-expected number of small refinery exemptions approved by the EPA. Soybean export sales commitments were also reported, with cumulative totals for the 2025-26 crop year at 41.95 million tonnes, down 17% from last year.
Corn prices were modestly higher due to spillover from soybeans and wheat, but export sales commitments for old crop corn were in line with last year's pace, while new crop corn export sales were down 33.6% from last year.