Corn Prices Ease Back After Brief Rebound
The corn market has taken a step back this morning after a slight rebound on Monday. Futures prices in the front months closed between $4.58 1/2 and $4.80 1/2, while deferred contracts were steady to 2 cents higher. The price correction comes despite a relatively stable open interest of just 1,991 contracts on Tuesday.
The recent weakness is likely due to falling crop condition ratings, which dropped by 4% in Monday's Crop Progress report. Only Missouri saw an improvement in its rating, while Nebraska and South Dakota reported significant declines. Brazil's ANEC estimates corn exports for July at 3.3 MMT, a decrease from their previous estimate but still above last year's figure.
A South Korean importer purchased 69,000 MT of corn in a tender overnight, adding to the market's supply concerns. The CmdtyView national average Cash Corn price was up 6 3/4 cents at $4.28 1/4 on Tuesday, but prices have since eased back.