Corn Prices Show Fractional Gains as Weather Forecast Improves

Corn prices are showing fractional gains on Tuesday morning trade, after falling sharply in Monday's session. The price action is being driven by an improving weather forecast and a decline in crude oil prices. On Monday, futures contracts fell between $2.50 to $13.50 cents, with open interest dropping 14,035 contracts mainly in September and December.

The USDA's Crop Progress report showed that 78% of the US corn crop was silking by July 26, which is four percentage points ahead of the five-year average. However, US condition ratings fell 4% to 63% in good to excellent condition. The Brugler500 index also declined by 11 points to 361.

The NOAA seven-day QPF forecast shows that parts of Iowa, Missouri, and Illinois will receive between one to two inches of rainfall over the next week, while eastern South Dakota/Nebraska and southern Minnesota are expected to see similar totals. Ohio and Indiana, on the other hand, are predicted to have lighter totals.

The USDA's FGIS reported that corn export shipments were 1.488 MMT (58.58 mbu) during the week ending July 23, which is 7.74% below the previous week and 2.88% below the same week last year. Mexico was the top destination for corn exports, followed by Japan and Colombia.