Corn Prices Rise Amid Strong Demand and Lower Yields, Soybean Market Mixed

Corn prices have continued to rise due to strong demand and lower yields in key U.S. growing areas, according to recent crop tours. The USDA is already projecting high new crop demand, which would further reduce corn stocks. Meanwhile, soybeans were mixed with most contracts higher, but traders consolidated after being overbought. Soybean meal futures dropped, while soybean oil gained ground on product spreads adjustments and support from rising crude oil prices.

The U.S. Black Sea slowdown is also benefiting the corn market, as global wheat exports remain restricted due to Russia's war in Ukraine. While this hasn't significantly boosted demand for U.S. wheat, the trade continues to monitor harvest activity at home and abroad, along with crop conditions in major producing countries such as Argentina, Australia, Brazil, Canada, China, and others.

U.S. corn export sales were lower than average last week, but new crop sales remained solid at 63.3 million bushels. This week's U.S. export sales for wheat were larger than average at 14.5 million bushels, led by Mexico and Taiwan.