Corn Retreats from 3-Year Highs

Corn futures fell to below $5.2 per bushel, pulling back from three-year highs as weak US export demand pressured the market. Corn export sales for the week ended September 17 came in at just 838,000 metric tons, at the lower end of analyst expectations, while total commitments for the 2026/27 marketing year were 29% below a year earlier. Wet conditions and rainfall across parts of the Midwest also continued to limit harvest activity, supporting crop basis levels, with cooler-than-average temperatures and above-normal rainfall expected across the Corn Belt over the next two weeks. Elsewhere, the latest US-China summit offered little progress on agricultural trade, while elevated Treasury yields and a stronger dollar weighed on grain markets by making US crops more expensive for overseas buyers. Meanwhile, USDA’s September outlook cut its 2026/27 US corn yield estimate to 178.5 bushels per acre and production to 15.8 billion bushels, pointing to a tighter supply outlook.

Corn futures traded around $5.3 per bushel, near 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%.