Chicago Corn futures were above $6.8 per bushel, holding its rising trend since hitting an eight-month low of $5.6 in July and diverging from its correlation with oil as concerns of low supply outweighed the outlook of lower demand. Poor weather in major growing regions of the Americas hampered expectations of the ongoing harvest. According to WASDE estimates, output in the US is expected to total 13.9 billion bushels in the next marketing year, down 415 million from prior estimates amid a decline in yields and harvesting area. World production and ending stocks were also revised lower. Regarding the current marketing year, summer droughts in the US wreaked havoc on domestic corn crops, with yields down to levels not seen since the drought of 2012. On top of that, La Nina effects in South America further hurt the harvests’ health, placing further pressure on supply.
Historically, Corn reached an all time high of 843.75 in August of 2012. Corn - data, forecasts, historical chart - was last updated on September of 2022.
Corn is expected to trade at 905.69 USd/BU by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1000.60 in 12 months time.