Corn Futures Fall from Nine-Week High on Favorable US Weather

Corn futures have retreated from their recent nine-week high reached on July 24 as favorable weather forecasts in the US Midwest have eased concerns over production risks. Forecasts call for ample rainfall and milder temperatures near the end of the week, which is expected to improve yield prospects after recent heat concerns.

The improved outlook has reinforced expectations for another large US harvest, weighing on prices. However, losses were limited by firm ethanol demand due to elevated crude oil prices amid the Middle East conflict, supporting biofuel production.

Ongoing Russia-Ukraine tensions have also underpinned grain markets, with attacks on Black Sea ports and grain infrastructure threatening export flows. The longer-term outlook remains supported by a tighter global corn balance, with the USDA projecting world corn consumption to exceed production for a second straight season, leaving the market more vulnerable to weather disruptions and export disruptions.