Chicago Board of Trade corn futures rallied nearly 2% on Tuesday after the US Department of Agriculture (USDA) unexpectedly lowered its US crop condition ratings in a weekly report, traders said. CBOT December corn ended 7-1/4 cents higher at $3.61-1/2 per bushel, its strongest gain in 3-1/2 weeks. The contract hit a life-of-contract low on Monday.
The USDA on Monday afternoon said the US corn crop was rated 55% good to excellent as of Sept. 8, down from 58% a week ago. Analysts had been expecting crop ratings to hold steady at 58% good to excellent, according to a Reuters poll.
Traders squared positions ahead of a monthly supply-and-demand report from the USDA, which is scheduled for release on Thursday. The report is expected to show lower US production. The USDA reported private sales of 278,200 tonnes of US corn to Mexico for 2019/20 marketing year shipment.