Wheat and Corn Futures Hit Three-Year Highs

Wheat and corn futures reached their highest levels in over three years by August 28, 2026, driven by a combination of geopolitical conflict and adverse weather. Wheat prices jumped 12.1% in a single week, with year-to-date gains exceeding 54.5%. This surge was primarily fueled by escalating tensions between Russia and Ukraine, including military strikes on grain export infrastructure and vessels in the Black Sea and Sea of Azov, which damaged shipping capacity and complicated insurance for firms.

Corn futures also rose 5.5% for the week. This increase followed a report from the United States Department of Agriculture that lowered yield estimates due to extreme heat and rainfall in the U.S. Corn Belt. While corn prices briefly declined on August 27 due to a U.S. harvest running ahead of schedule, the overall trend remained upward as analysts suggested the global market is entering a rationing mode.

Other global factors contributed to the volatility. Dry weather in Australia reduced 2026 crop estimates from 36 million to 28 million metric tons, while drought and heat in Europe further pressured futures. In the U.S., hard red winter wheat prices in Kansas averaged between $6.69 and $6.83 per bushel, a significant increase from the $4.17 to $4.24 range seen in 2025. Meanwhile, soybean prices remained stable, supported by steady demand from China as buyers favored oilseeds over feed grains.