Corn futures climbed to about $4.50 per bushel, marking their highest level in more than seven weeks, as crude oil prices surged amid escalating tensions in the Middle East. Brent crude moved above $90 per barrel after Iran targeted vessels in the Strait of Hormuz over the weekend and the US carried out a ninth consecutive night of airstrikes, bolstering expectations for biofuel demand.
On the demand side, the USDA reported old-crop US corn export sales of 315,000 metric tons for the week ended July 9, falling well short of market expectations ranging from 500,000 to 1.1 million tons. New-crop export sales came in at 311,200 tons, near the lower end of forecasts of 300,000 to 1.1 million tons.
Market participants now look ahead to the USDA’s weekly Crop Progress report, due later Monday, for updated ratings on US corn conditions following a spell of extreme heat in major producing areas. Weather forecasts are calling for cooler temperatures and increased rainfall across key growing regions, improving the outlook for yields and overall production.
