US grain prices have surged since the Iran war began, triggering a flurry of corn and soybean sales by farmers who squirrelled away last year's harvests due to weak prices, reported Reuters.
Since the US and Israel attacked Iran, farmers across the Midwest have capitalised on climbing prices by selling corn, soy and wheat from storage bins to ethanol producers and major traders including Archer-Daniels-Midland and Bunge.
Growers also raced to sign contracts to pre-sell crops they have not yet planted and expect to harvest this year.
The rally was a welcome surprise for farmers and allowed many to lock in modest profits to cover soaring fertilizer, chemical and seed bills, though they said the gains were not enough to end a downturn in the agricultural economy.
Dave Kestel, a farmer in Manhattan, Illinois, said he sold about 40% of the corn and soybeans he harvested last year and roughly 10% of what he expects to harvest in 2026. He had been paying daily charges to store last year's crops and was eager to unload them when prices jumped.
"I was doing the farmer happy dance," Kestel said.
Soybean futures touched a May 2024 high above $12 per bushel on the Chicago Board of Trade on Thursday. Corn futures reached the highest point since May 2025 this week, while wheat set the highest level since June 2024.
Last year, prices sagged due to ample supplies and as soy exports suffered due to President Donald Trump's trade war with China. The US Department of Agriculture has started distributing $12 billion in aid to farmers hurt by Trump's trade policy.
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