Corn Hits Fresh 9-Week High

Corn futures rose above $4.6 per bushel, hitting a fresh nine-week high, supported by tightening global supply expectations, elevated crude oil prices, and adverse weather. Hot and dry conditions across parts of Europe and the Black Sea region continued to raise concerns over crop yields, while traders closely monitored weather across the US Corn Belt during the critical pollination stage. Additionally, crude oil prices remained near $100 per barrel amid escalating tensions in the Middle East, improving the outlook for corn-based ethanol demand. The market also remained underpinned by the USDA's latest WASDE report, which cut 2026/27 US ending stocks more than expected while raising export forecasts, pointing to a tighter domestic supply outlook. Despite generally favorable US crop conditions, uncertainty over weather during the key yield-development period kept risk premiums elevated.

Corn futures traded above $4.6 per bushel, hovering near a nine-week high as higher crude oil prices outweighed better-than-expected US crop conditions. US-Iran fighting continued near the Strait of Hormuz, while Houthi militants in Yemen attacked two vessels transiting in the Red Sea, disrupting traffic through two of the world's most critical energy chokepoints. Supply concerns also spread to the Black Sea after attacks targeted the Caspian Pipeline Consortium, a key export route for Kazakhstan's crude. The resulting surge in oil prices boosted demand expectations for corn used in biofuel production. Meanwhile, the USDA rated 67% of US corn crops in good-to-excellent condition, down one percentage point from the previous week but above market expectations of 66%. The rating followed extreme heat across key growing regions, though forecasts for cooler temperatures and increased rainfall improved the production outlook.

Corn futures rose to around $4.5 per bushel, hitting more than a seven-week high as crude oil prices jumped after hostilities in the Middle East intensified. Brent crude rose above $90 a barrel after Iran targeted vessels in the Strait of Hormuz over the weekend, while the US carried out a ninth consecutive night of strikes, boosting the outlook for biofuel demand. Meanwhile, the USDA rated 67% of the nation’s corn crop in good-to-excellent condition, one percentage below the previous week’s rating but above market expectations of 66%. This followed extreme heat across key growing regions, but forecasts now point to cooler temperatures and increased rainfall, boosting production prospects. The agency also reported old-crop US corn export sales of 315,000 metric tons for the week ended July 9, well below market expectations of 500,000 to 1.1 million tons, while new-crop sales totaled 311,200 tons, near the lower end of forecasts of 300,000 to 1.1 million tons.