Corn Prices Climb as Harvest and Crop Conditions Lag

Corn prices edged higher on Tuesday as traders monitored crop conditions and harvest progress in the U.S. December corn futures climbed 4-1/4 cents to settle at $5.01-1/2 per bushel on the Chicago Board of Trade (CBOT).

The U.S. Department of Agriculture (USDA) released a report on Sunday showing that only 54% of the corn crop was in good-to-excellent condition, a decline of three percentage points from the prior week. Analysts had expected a smaller drop of just one percentage point.

Harvesting activity also lagged behind expectations, with farmers completing just 23% of corn collection. This figure was below both the five-year average of 27% and analyst projections of 26%, according to the USDA.

In related news, President Donald Trump signed an executive order on Monday to expand access to red dye diesel fuel, which is commonly used in agricultural operations.