Corn Takes the Lead as Weather Worries Grip Global Grain Markets

US corn has become the strongest grain market, driven by concerns over crop conditions in the US and Europe. The Chicago corn price gained four percent last week and is now five percent higher over the month.

The USDA's crop ratings fell more sharply than expected, with only 57 percent of corn rated good-to-excellent, down three percentage points in a week. The annual Pro Farmer crop tour estimated US corn yields at 10.9 tonnes per hectare, well below the USDA's most recent estimate of 11.3 t/ha.

Europe's maize outlook has also deteriorated again due to heat and drought. The EU's crop monitoring service cut average maize yield to 6.61 tonnes per hectare, down from 6.93 in July and now seven percent below the five-year average.

India is also facing weather risks, with its monsoon tracking around 13 percent below average and potentially finishing the season 15 percent below normal, making it the weakest since 2009.