Corn and Wheat Surge to 3-Year Highs on Tight US Supply and Black Sea Disruptions
CommodityGeopolitics
Corn and wheat prices have surged to their highest levels in over three years amid global supply pressures. Corn is being supported by concerns that US production may fall short of expectations, while wheat has rallied on the risk of disrupted exports from the Black Sea following heightened tensions between Russia and Ukraine. Wheat futures closed up 3.1% on Friday at 784 cents per bushel, and surged 12.1% for the week, marking the biggest weekly gain since March 2022. Meanwhile, corn closed up 0.6% at 536.5 cents per bushel, and rose 5.5% for the week. Corn prices were bolstered by the USDA's WASDE report, which cut its yield estimate by 2.3 bushels per acre to 180.7 bushels per acre, as well as disappointing results from the Pro Farmer Crop Tour field survey. Wheat prices were supported by damage to Russia's grain export infrastructure in the Black Sea, which could reduce Russian wheat exports by several million tons. Russia and Ukraine together account for more than a quarter of global wheat exports.
