FX.co ★ Corn Rebounds Past $4.5

Corn futures have rebounded above $4.50 per bushel, marking a recovery from the two-month low of $4.39 observed on May 8th. This increase is driven by resilient demand and emerging supply risks, which have counteracted the negative pressure stemming from abundant planting and record yield predictions. According to the USDA’s WASDE report released on May 12th, planted acreage has risen to 95.3 million, with projections indicating a bumper crop of 15.82 billion bushels and yields of 181 bushels per acre. These figures push new-crop ending stocks toward an anticipated 1.8 billion bushels. However, demand picked up significantly in mid-May, with weekly export sales and shipments increasing by over 30%, as buyers sought to secure supplies before potential US tariffs are implemented on July 1st. Concurrently, South American competitors face logistical challenges, and uncertainties surrounding Argentina’s crop outlook limit global supply. Adding to the positive market sentiment is the onset of the seasonal period known for crop-weather volatility. The rapid advancement of planting—62% completed by May 12th—also suggests the potential for further upward movement.