Corn Market Remains Range-Bound Amid Bearish Weather Forecasts

The corn market experienced a 5-cent loss on August 5th, despite no change in the bearish weather forecast for major production areas. Forecasts indicate limited moisture stress for the Plains and northwest Midwest crop areas over the next week, but should bring relief to these regions within the 6-to-10-day forecast.

The US corn production side continues to be debated ahead of the August WASDE report next week, while demand remains robust on the other side of the balance sheet. A morning flash sale of 120,000 tonnes of corn to Mexico took place, but only 30,000 was for new crop and 90,000 was for the 2027/28 season.

Bullish news regarding the French crop at a 50-year low and total EU corn production down 20% year-over-year are being offset by yield bumps for now. December corn tested this week's lows at 458 but was unable to take out that level today, with the market remaining range-bound.

Sean Lusk, Vice President of Commercial Hedging Division at Walsh Trading, advises that unless a surprise change in the weather outlook removes rain from the forecast, he expects a sideways chop to continue into the next crop report on August 12th.