Corn Falls from 5-Week High

Corn fell toward $4.50 per bushel, moving further away from the five-week high of $4.64 reached on July 24, pressured by a sharp decline in crude oil prices after the US and Iran paused military strikes over the weekend, raising hopes that diplomatic efforts could de-escalate tensions in the Middle East and restore shipping through the Strait of Hormuz. Lower energy prices reduced support for corn as falling crude weakened the outlook for ethanol demand. Meanwhile, improving weather across the US Corn Belt added further pressure, with temperatures expected to ease following the weekend's heat while rainfall is forecast to alleviate dryness and support crop development. Traders also monitored developments in the Black Sea, where efforts to maintain grain shipments through Ukrainian ports helped ease concerns over export disruptions.

Corn futures traded above $4.5 per bushel, hovering near multi-week highs, 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, elevated crude oil prices boosted the outlook for corn-based ethanol demand, as the ongoing conflict in the Middle East heightened concerns over disruptions to global oil supplies. 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.