Corn futures traded above $4.50 per bushel, hovering near their highest levels since late May, as geopolitical tensions and adverse weather conditions fueled concerns about global supply. Persistent dryness across portions of the US Midwest has raised the risk of lower yields, with the USDA reporting that only 63% of the US corn crop is now rated good-to-excellent, down from 67% the previous week and below market expectations.
At the same time, ongoing hostilities between Russia and Ukraine have intensified worries over Black Sea grain exports, as damage to port infrastructure and disruptions to shipping routes threaten supplies from one of the world’s key exporting hubs. Renewed conflict in the Middle East has further complicated the outlook by constraining fertilizer shipments through the Strait of Hormuz and driving crude oil prices higher.
Stronger energy markets have, in turn, lent support to corn prices by improving prospects for ethanol demand. The market has also been bolstered by the USDA’s latest WASDE report, which unexpectedly lowered 2026/27 US ending stocks while raising export projections, reinforcing the tighter supply outlook.
