Wheat, Corn and Soybeans: How They Differ in Trade
Three crops, three markets: how wheat, corn and soybeans differ in use, planting seasons, quality needs and the way they move in trade.
Wheat, corn and soybeans are often grouped together as the big three grains and oilseeds, yet they behave differently in the field and in the market. Knowing the differences makes market news easier to follow.
Different jobs in the economy
Wheat is mostly a food grain. Most of it is milled into flour for bread, noodles, pastries and crackers, although lower-quality wheat can be fed to livestock.
Corn has a wider range of uses. A large share goes to livestock feed. Other portions go into ethanol production, food ingredients such as starches and sweeteners, and a variety of industrial products.
Soybeans are crushed into two products: meal, which is a high-protein feed ingredient, and oil, which is used in cooking and manufacturing. Because the crop splits into two products, both feed demand and oil demand affect its price.
Different calendars
In the Northern Hemisphere, winter wheat is planted in the fall, goes dormant over winter and is harvested in early summer. Spring wheat is planted in spring and harvested in late summer. Corn and soybeans are planted in spring and harvested in fall. As a result, the supply pressure that comes with harvest hits at different times of year for each crop.
Different quality questions
Wheat is divided into classes based on kernel hardness, color and season, such as hard red winter, hard red spring, soft red winter, white wheat and durum. Millers choose a class by what they plan to bake. Protein content is a key factor for many buyers.
Corn and soybeans are more standardized. Buyers pay attention to moisture, damage and foreign material, and for soybeans, also oil and protein content in some contracts.
Different roles in rotation
Corn is a heavy user of nitrogen fertilizer. Soybeans are legumes, which means they work with bacteria in the soil to capture nitrogen from the air. That is one reason many farms alternate corn and soybeans from year to year, which can also help break pest and disease cycles. Wheat often fits in as a third crop in some regions.
Different units
All three are priced per bushel in the US, but the bushel weights differ: 60 pounds for wheat and soybeans, and 56 pounds for shelled corn. See our explanation of what a bushel is if you need to convert prices to metric tons.
Different trade patterns
Wheat is consumed in nearly every country, so it moves widely across the world and is often bought by governments and large mills through tenders. Corn trade is strongly linked to livestock and ethanol industries. Soybean trade depends heavily on a smaller group of large importers and on crushing capacity. These patterns mean that a weather problem or policy change can ripple through each market in a different way.
A quick comparison
- Main use: wheat for food, corn for feed and fuel, soybeans for meal and oil.
- Planting: wheat in fall or spring, corn and soybeans in spring.
- Bushel weight: 60, 56 and 60 pounds.
- Fertilizer needs: high for corn, lower for soybeans.
Frequently asked questions
Why are wheat prices not always moving with corn prices? They share some links, since wheat can substitute for corn in feed when it is cheap, but each has its own supply, demand and calendar. Prices can move in different directions.
Are soybeans a grain? Technically they are an oilseed and a legume, but they are traded in the same markets as grains.
Which crop is most traded globally? It depends on whether you measure by volume or by value, and it changes from year to year. It is better to check current trade data from a reliable source than to rely on a general rule.