Corn Holds Near 3-Year Peak

Corn futures held above $5.4 per bushel after hitting their highest level since July 2023, supported by strong US export demand, tightening global supplies and expectations for further agricultural trade with China. US corn export inspections jumped 40% year-on-year to 1.94 million tonnes in the week ended September 17, exceeding market expectations and lifting 2026/27 shipments further ahead of last year’s pace. Heavy Midwest rains are also delaying harvest in parts of the region, limiting the near-term flow of new supplies, although overall harvesting remains slightly ahead of the five-year average. Global fundamentals remain supportive, with USDA projecting a nearly 30-million-tonne shortfall between world corn production and consumption in 2026/27, the largest deficit in more than three decades. Traders are also watching the Trump-Xi meeting this week for potential progress on US agricultural purchases, while continued disruptions to Black Sea grain trade are adding support.

Corn increased to 550.00 USd/BU, the highest since July 2023. Over the past 4 weeks, Corn gained 10.48%, and in the last 12 months, it increased 28.75%.

Corn futures rose above $5.3 per bushel, near their highest level since mid-2023, supported by tightening global supplies. The USDA now projects global corn production to fall short of consumption by nearly 30 million metric tons in 2026/27, which would mark the largest deficit in more than 30 years, with lower output among major exporters and continued disruptions to grain shipments from the Black Sea contributing to the shortfall. Brazil is also expected to divert more corn toward ethanol production, potentially reducing export availability, while lower planting growth could further tighten supplies. However, the advancing US harvest is providing some pressure, with 8% of the crop harvested by September 13, ahead of the five-year average, while 57% was rated good to excellent, up from 56% a week earlier. Meanwhile, initial US-China trade talks were described as positive by both sides, raising hopes for increased Chinese purchases of US agricultural goods, potentially including corn.