CHICAGO, March 13 (Reuters) - U.S. grain prices have

surged since the Iran war began, triggering a flurry of corn and

soybean sales by farmers who squirreled away last year's

harvests due to weak prices.

Since the U.S. and Israel attacked Iran, farmers across the

Midwest have capitalized on climbing prices by selling corn, soy

and wheat from storage bins to ethanol producers and major

traders including Archer-Daniels-Midland ( ADM ) 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 U.S. Department of Agriculture has started

distributing $12 billion in aid to farmers hurt by Trump's trade

policy.

QUICK TO SELL

Analysts said the aid strengthens balance sheets in the

short term but does little to improve underlying profitability.

Farmers were quick to sell crops as they sought to stem losses

and questioned how long the rally would last. Corn and soybean

prices at times have each been up about 6% from their levels

since before the war began.

"We are basically filling all of our grain elevators in

North America and in South America as we speak," Julio Garros,

Bunge's chief operating officer, said during an investor event

on Tuesday.

A spike in oil prices because of the war lifted prices for

crops used to make biofuels. Also boosting corn prices, the

conflict disrupted crucial fertilizer shipments.

The gains were generally enough to allow farmers to make

money, though break-even levels vary, said Angie Setzer, partner

at advisory firm Consus Ag Consulting.

"When the market rallied big, it provided a lot of

opportunities that they had been waiting for," said Setzer,

whose customers sold corn, soybeans and wheat.

Some farmers took chances on the size of their fall

harvests. Keaton Lyons, who farms about 1,200 acres in

Rensselaer, Indiana, agreed to sell about 100,000 bushels of

corn he will soon plant.

"Pricewise, I feel really good," Lyons said. "The thing that

I'm nervous about is we don't have a kernel in the ground and

we're 65% sold."

FARMERS SEIZE OPPORTUNITY

Many farmers sold much of last year's soybean crop in late 2025,

but a large share of corn remained unpriced, so the recent surge

could really help corn-heavy operations, said Wesley Davis,

partner at Meridian Agribusiness Advisors.

As of December 1, growers were storing 14% more corn on

farms than a year earlier and 2% more soybeans, U.S. Department

of Agriculture data show.

In Waseca, Minnesota, Richard Guse, who farms about 3,500

acres with his brother and son, said he made a small profit

selling about a third of his 2025 corn crop to ethanol producer

Guardian Energy for $4.25 per bushel this week.

"The prices have run up in a hurry," Guse said. "It goes

down a lot faster than it comes up."