Corn ticks up from three-year lows after US predicts record harvest

HAMBURG: Chicago corn on Monday rose from three-year lows hit last week after the US Department of Agriculture (USDA) forecast a record US corn crop this year.

Chicago Board of Trade most-active corn firmed 0.1% to $4.64-1/2 a bushel at 1156 GMT, close to Friday’s low of $461-3/4, which was the lowest since December 2020. Wheat fell 0.7% to $5.70-3/4 a bushel, soybeans rose 0.5% to $13.54-3/4 a bushel.

Corn slumped last week after a bumper US crop was forecast by the USDA alongside a record harvest expected in Brazil. But there are concerns about dryness delaying Brazilian soybean plantings and stressing corn.

“Corn is being supported by buying interest today after the three-year lows on Friday but with the overall bearish picture still intact after the USDA forecasts of a huge US corn crop,” said Matt Ammermann, StoneX commodity risk manager. “There is also concern about dryness in parts of Brazil, a factor also supporting soybeans.”

“Some more rain is forecast in Brazil but this has been the case for some time with rain failing to materialise.” Markets are also watching developments with the Ukrainian shipping channel. Overall they expect shipping to continue despite a lack of Russian safety guarantees, and Ukraine still has large volumes of corn to export to world markets, he said.