Corn Futures Near 2023 Highs Amid Global Supply Concerns

Corn futures are trading near their highest level since mid-2023, supported by concerns over global supplies and disruptions to Black Sea trade.

The USDA projects a significant deficit in corn production, with output expected to fall short of consumption by nearly 30 million metric tons in 2026/27. This would mark the largest deficit in more than 30 years, primarily due to lower output among major exporters and continued disruptions to grain shipments from the Black Sea.

Brazil is also diverting more corn toward ethanol production, potentially reducing export availability. Lower planting growth could further tighten supplies.

However, in the US, an advancing harvest is providing some pressure. Eight percent of the crop has been harvested by September 13, ahead of the five-year average, while 57% was rated good to excellent, up from 56% a week earlier.