Corn futures climbed above $4.50 per bushel, nearing an eight-week high, as rising crude oil prices outweighed stronger-than-anticipated U.S. crop conditions. Hostilities between the U.S. and Iran continued near the Strait of Hormuz, while Houthi militants in Yemen threatened shipping in the Red Sea, disrupting traffic through two of the world’s most strategic energy chokepoints. Supply concerns further extended to the Black Sea after attacks targeted the Caspian Pipeline Consortium, a major export route for Kazakhstan’s crude. The resulting surge in oil prices bolstered demand prospects for corn used in biofuel production.
At the same time, the USDA rated 67% of U.S. corn in good-to-excellent condition, down one percentage point from the previous week but slightly above market expectations of 66%. The assessment followed a spell of extreme heat across key growing regions, though forecasts for cooler temperatures and increased rainfall have improved the outlook for production.
