As has been the case since the start of the war between the United States and Iran, the conflict has influenced the course of the markets, which remain highly volatile in light of recent developments. This time, the possibility of a resolution to the conflict between the two countries has disrupted oil prices and grains in its wake. Price declines reversed on Friday as the next government report and the meeting between the leaders of China and the United States approached.
Earlier in the week, the prospect of an agreement caused a significant drop in crude oil prices, which fell by around 11% in a single session, leading to similar declines in corn and soybeans. Price volatility continued throughout the week but eased as Friday approached.
Sowing in the United States has progressed at a rapid pace, surpassing the five-year average, putting pressure on prices due to favorable conditions and long-term prospects.
Prices of wheat have been particularly unstable. While beneficial rains fell in some areas of the American Plains, concerns about late frost in western Kansas and eastern Colorado supported prices at the end of the week.
Market attention now turns to next week with the unveiling of the USDA’s WASDE report scheduled for May 12. This report will provide the first official estimates of supply and demand for the new season. In addition, a meeting between Presidents Trump and Xi Jinping on May 14 could boost soybean exports to China, which have fallen short of targets despite agreements reached last fall.
The July soybean futures closed at $12.08, compared to $12.0325 a week earlier.
Corn futures for July ended Friday at $4.7125, compared to $4.8025 the previous Friday.
July wheat futures closed at $6.19, down from $6.3775 the previous week.
