Markets Now Closes - 4/28 Is $5 Dec Corn a Reality as Wheat Surges to $7?

Why It Matters

Higher wheat and corn prices signal tightening global supplies and could prompt planting and input-cost shifts for U.S. growers, affect feed and biofuel margins, and reshuffle export flows; soybean dynamics and geopolitical risk will determine whether the price rallies sustain.

Summary

Wheat futures jumped to contract highs on Thursday as worsening spring planting prospects in HRW and northern spring-wheat areas, coupled with drier extended forecasts and likely upward revisions to USDA export projections, tightened market sentiment. Corn rallied alongside wheat, supported by weather delays and growing concerns that fertilizer supply disruptions and geopolitical tensions could cut U.S. corn acreage by roughly 1 million acres, pushing December futures toward and potentially above $5. Soybeans lagged, pressured by rapid early planting and expectations of acreage gains, while uncertainty around a U.S.-China summit and Strait of Hormuz tensions cloud demand prospects. Argentina’s GMO-related EU rejection of soybean meal also rattled meal markets and could create export opportunities for U.S. suppliers.

Original Description

Randy Martinson, Martinson Ag Risk Management