Corn Sees Gains as Private Tour Lowers Yield Estimates
Corn prices have seen gains due to lower yield expectations from a major private crop tour. The tour projected a six-year low in corn yield, which would significantly reduce new crop ending stocks if realized. Fund and technical buying also contributed to the increase in corn prices.
The USDA reports that 57% of corn is currently in good to excellent condition, down 3% from last week. However, solid overall demand remains a key factor supporting corn prices. The major private crop tour's yield estimates are being closely watched by traders, who are also monitoring second crop harvest and first crop planting activity in Brazil.
Soybeans, on the other hand, were lower due to profit taking and technical selling. Despite record yield potential from last week's major private crop tour, solid demand and crush margins pulled contracts off of their lows. The USDA reported that 60% of soybeans are called good to excellent, down 1% on the week.
The wheat complex was mixed, with traders monitoring the Black Sea export situation and U.S. harvest activity. Global demand for U.S. wheat has not improved despite ongoing restrictions in the Strait of Hormuz, but Russia's war on Ukraine continues to impact infrastructure and exports.