By Kirk Maltais
--Wheat for May delivery rose 2.5%, to $6.13 1/4 a bushel, on the Chicago Board of Trade on Friday, with the health of the U.S. winter wheat crop becoming a bigger focus as springtime nears.
--Corn for May delivery rose 1%, to $4.67 a bushel.
--Soybeans for May delivery fell 0.3%, to $12.23 3/4 a bushel.
HIGHLIGHTS
Back at Home: U.S. wheat led the grain complex higher, with trader focus going from military actions overseas to dry weather for winter wheat-growing areas that may affect what final yields look like. "Drought conditions in the Plains become an increasing concern as the crop begins to enter an important growth stage," said Brady Huck of EmpowerAg Trading. "This is the time of year when the growing point emerges above the surface after winter dormancy." According to USDA data, 55% of winter wheat acres are suffering from drought conditions.
The Big Kahuna: Grains still took a lot of their trading direction from news surrounding the war in Iran and the Strait of Hormuz. The U.S. is allowing countries to purchase sanctioned Russian crude already at sea. Defense Secretary Pete Hegseth said earlier that there is no clear evidence that Iran has mined the Strait. But grains and energy commodity markets remained exposed to any war headlines, including news that the Pentagon is sending more Marines and warships to the front.
INSIGHT
Taking the Opportunity: Grain traders briefly took advantage of the war-related risk premiums that have been added to grains all week by doing some profit taking. Grains eventually turned higher with crude oil Friday afternoon, but more periods of locking in large profits are expected. "The bulls retain the edge," said the Hightower Report in a note.
Other Signals: Treasurys are little changed amid the fighting in Iran, as well as a slew of pre-war data that has been released this week. Current events including the continuing blockage of the Strait of Hormuz, a downward revision to 4Q GDP figures, and an elevated reading on the Fed's preferred inflation gauge, has many investors thinking that inflation is returning to the U.S. economy. Also noteworthy is that the released data only covered periods preceding the start of the war.
AHEAD
--The USDA will release its weekly Grain Export Inspections report at 11 a.m. ET Monday.
--General Mills will release its fourth-quarter 2025 earnings report before the stock market opens on Wednesday.
--The EIA will release its Weekly Petroleum Status Update report at 10:30 a.m. ET Wednesday.
--Matt Grossman contributed to this article.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
03-13-26 1522ET
