Corn Prices Extend Decline Amid Harvest Concerns and Weakening Demand
Corn prices are experiencing an extended pullback on Wednesday morning, down by 4 to 5.5 cents so far. This follows losses of 4.25 to 6.25 cents across most contracts on Tuesday, with futures closing within a couple pennies of the low.
The CmdtyView national average Cash Corn price dropped by 6.25 cents to $4.91.5, while open interest only saw a modest increase of 52 contracts on Tuesday, indicating a rotation of ownership rather than new investment.
Some market participants had expected China to make purchases of US corn ahead of this week's meeting, but any such move would likely be seen as goodwill positioning rather than a significant shift in demand. The spread between the two countries' futures has narrowed significantly since June, with the current gap standing at less than $3 per bushel.
Harvest conditions are also becoming a concern, particularly in the western states where totals of 1 to 4 inches are expected this week. Argentina's corn crop is estimated by the Buenos Aires Grain Exchange to reach 66 million metric tons for 2026/27, up from last year's 64 million.
Meanwhile, ANEC forecasts a Brazilian corn export total of 5.97 million metric tons in September, representing a 0.23 million metric ton increase from their previous projection and a significant drop from the same period last year.