Corn futures slipped below $4.50 per bushel, retreating from a nine-week high reached on July 24, as improved weather forecasts across the US Midwest eased worries about production risks. Expectations of ample rainfall and milder temperatures later in the week have brightened yield prospects after recent heat-related concerns, reinforcing the outlook for another large US harvest and putting downward pressure on prices.
However, the decline was capped by solid ethanol demand, with elevated crude oil prices amid the conflict in the Middle East continuing to support biofuel production. Ongoing tensions between Russia and Ukraine also lent support to grain markets, as attacks on Black Sea ports and grain infrastructure threatened export flows.
Looking ahead, the longer-term outlook remains underpinned by a tighter global corn balance. The USDA projects that world corn consumption will exceed production for a second consecutive season, leaving the market more exposed to potential weather-related setbacks and export disruptions.
