Crude oil prices sink below 89.00 on hopes of a return to normalcy in the Strait of Hormuz.
May 27, 2026
The grain trade is under heavy pressure early this morning as crude oil tumbled below 89.00 a barrel. Iran has agreed to shared management with Oman for monitoring traffic through the Strait of Hormuz and has committed to restoring the number of commercial transit ships through the Strait to prewar levels within a month. It is also agreed that US military forces will withdraw from the Strait lift the Naval blockade. Pres. Trump meets in Camp David with his staff, as they determine whether the current negotiations are acceptable and sustainable.
In the mix of weakness in the grains, corn and soybeans are only down 3-4 cents, pushing them into raw support at 450 for July corn and 1180 for July beans. Meanwhile, wheat prices are under heavy pressure despite declines in crop ratings. Harvest is on the way, and the seasonality of driving prices down ahead of the “feast before the famine” maintains its seasonal supremacy. For now, what is being ignored is that Chinese wheat crops are receiving 200-400% of normal rainfall, hampering winter wheat harvest. These rains are occurring in the highest-production areas, which will severely hamper quality.
