FX.co ★ Corn Hits Fresh Multi-Week Lows

Corn futures fell to around $4.40 per bushel, marking a new seven-week low, as favorable weather across the US Midwest bolstered expectations for a strong harvest. Drier conditions in major producing areas improved planting progress, while timely rainfall in the Plains eased drought concerns and further supported confidence in crop development. Market sentiment was additionally pressured by projections that as much as 70% of the US corn crop could be rated in good-to-excellent condition. Global fundamentals also weighed on prices, with ample worldwide supplies and robust harvest prospects in South America adding to the bearish tone. In the US, sizable old-crop inventories continued to dampen the demand outlook. Gains in crude oil prices, driven by renewed tensions in the Middle East, typically lend support to grain markets via biofuel demand, but this effect was overshadowed by the impact of favorable crop conditions and abundant supply. Technical selling intensified the downward move after corn futures failed to break above key resistance levels, accelerating the decline.