Grain reverse early headway, despite crude oil's jump to $90
Market intelligence by experts, not machines.
Our analysis has been carefully delivered by experienced analysts since 2014.
-
Oil soars to $90/t as Trump pledges a ’beating’ on Iran. Black Sea tensions rise too
-
However, wheat prices, weighed by comfortable supply signs, lose early headway
-
Wet Midwest forecasts send Chicago corn and soybeans lower
Grains staged a late slide on profit-taking, after staging an early rally on signs of re-escalations in hostilities in both the Middle East and Black Sea flashpoints.
Brent crude futures for September-26 leaped 8.2% in late deal back above $90/Bbl, after US President Donald Trump promised a “beating” for Iran in retaliation for an overnight attack on US military targets in the Middle East.
Mr Trump said: “We’re going to beat the f***ing shit out of them. We’ll be hitting them hard. They’re going to get a beating.”
In another sign of reviving hostilities, US and Saudi Arabian forces also made joint strikes on Iran-backed Shia militants in Iraq on Tuesday.
In the Black Sea, concerns for shipping disruptions were stoked by reports of a missile strike on the Russian port of Taganrog, a grain-export hub on the Sea of Azov, and of restrictions in truck deliveries to two terminals at the Black Sea port of Novorossiysk and one at the Azov port of Taman.
Nonetheless, wheat futures, which rose by 2.9% in early deals in London, retreated in late trading, weighed by profit-taking encouraged by northern hemisphere harvest pressure, comfortable exporter carry-in stocks and signs of modest demand among importers, many of which have reported bumper harvests.
In another reassurance to the market, Rusagrotrans pegged Russia’s July wheat exports at 1.9Mt, below the previous estimate of 2.1Mt, but ahead of many forecasts from private commentators.
EU soft wheat exports so far in 2026/27 are, at 571.0Kt, running 61% behind the year-ago pace, even as it may face increasing pressure of grain imports from Ukraine, as the country struggles to ship from Odesa.
London November-26 feed wheat futures sank by 0.4% in late deals, as did Paris September-26 milling wheat.
Chicago soft red winter wheat for September-26 slid 0.3%.
While rapeseed, linked to oil markets through its use in making biodiesel, was trading in positive territory, its headway was limited to 0.1% for the Paris November-26 contract.
Chicago soybeans for September-26 fell by 2.4%, returning below the much-watched $12.00/Bu mark, undermined by an injection of rain into the western Corn Belt weather outlook. Corn for September-26 dropped 1.8%.
“Monsoon-related moisture interacting with a cold front will deliver much-needed Midwestern rain, starting on Thursday in the western Corn Belt,” the USDA said.
“Five-day Midwestern rainfall should reach 1-3 inches or more, except in the lower Great Lakes region.”
