Corn Futures Hold Near Three-Year High as US Crop Ratings Slip

Chicago corn futures remained near three-year highs on Tuesday, supported by US Department of Agriculture (USDA) data showing crop conditions deteriorated more than analysts had anticipated. The most-traded corn contract on the Chicago Board of Trade (CBOT) was up 0.2% at $5.16-3/4 a bushel, after touching $5.24-1/4 on Monday, its highest level since July 2023.

The USDA reported that 57% of the US corn crop was in good-to-excellent condition as of Sunday, down from 60% a week earlier. Analysts had forecast a reading of 59%. Soybean ratings also slipped, with 60% of the crop in good-to-excellent shape, down from 61%, against expectations of no change. Both ratings are the lowest for this time of year since 2023.

Corn prices had already been supported by a crop tour last week that found subpar crops due to adverse summer weather, with production estimates falling well below government forecasts. In Europe, crop monitoring service MARS cut its grain maize yield forecast for a second consecutive month, citing heat and drought.

Wheat was flat at $6.99-3/4 a bushel, holding near a two-year high reached on Monday, as traders weighed comments from Ukrainian President Volodymyr Zelenskiy about a potential "diplomatic track" with Russia over attacks that have curtailed Black Sea exports.

Soybeans edged down 0.1% to $12.23-1/2 a bushel, with analysts pointing to rumours that the US government could grant more exemptions than expected to oil refiners from renewable fuel blending rules, which would reduce demand for biofuels made partly from soybean oil.

So far this year, CBOT corn is up roughly 17%, wheat has gained 38%, and soybeans have risen 17%.