Corn Rises from One-Month Low

Corn futures rose to around $4.4 per bushel, attempting to rebound from a four-week low as higher crude oil prices boosted demand for biofuel feedstocks. Reports of renewed attacks in the Strait of Hormuz and the lack of clarity over a deal to reopen the critical waterway drove oil prices higher. Agricultural commodity prices often tracked energy markets due to the growing use of crop-based feedstocks in biofuel production. Meanwhile, expectations of abundant supplies limited gains, with brokerage StoneX projecting the 2026 US corn harvest at 16.16 billion bushels. Additionally, the USDA lowered its good-to-excellent rating for the US corn crop for a third consecutive week, though the deterioration did little to offset the market's bearish supply outlook. Traders also continued to monitor the Russia-Ukraine conflict and its impact on Black Sea grain exports, although expectations for another large harvest from the region continued to weigh on prices.

Corn futures traded below $4.4 per bushel, holding near a four-week low as weaker crude oil prices weighed on sentiment across agricultural markets. Oil prices plunged following an agreement between Iran and Oman to partially reopen the Strait of Hormuz, fueling expectations of increase energy flows from the Middle East. Agricultural prices are often influenced by energy markets due to the growing use of crop-based feedstocks in biofuel production. Additional pressure came from expectations of abundant supplies, with brokerage StoneX projecting the 2026 US corn harvest at 16.16 billion bushels. The USDA also lowered its good-to-excellent rating for the US corn crop for a third consecutive week, though the deterioration did little to offset the market's bearish supply outlook. Meanwhile, traders continued to monitor the Russia-Ukraine conflict and its impact on Black Sea grain exports, although expectations for another large harvest from the region continued to weigh on prices.

Corn futures rose to around $4.5 per bushel, as mounting concerns over crop losses in Europe and parts of China outweighed expectations for another strong US harvest. Persistent heatwaves and prolonged dry weather across Western Europe, particularly in France, have severely stressed corn crops, prompting lower yield forecasts and raising fears of tighter global supplies. China is also experiencing hot and dry conditions in several key agricultural regions, adding to uncertainty over global feed grain production. Still, gains were capped by generally favorable crop prospects in the US, where forecasts continue to call for timely rainfall across much of the Midwest after brief periods of heat, supporting expectations for a large harvest. Market participants are also closely monitoring upcoming USDA crop condition reports for any signs that recent warmer weather has begun to affect yield potential.