FX.co ★ Corn Holds Near 1-Month Highs

Corn futures traded above $4.30 per bushel, hovering near one-month highs, supported by firmer crude oil prices and improved US crop conditions. The USDA reported that 68% of the US corn crop was rated in good or excellent condition, up from 67% the previous week, even as the threat of hot, dry weather persisted. Forecasts called for hot and mostly dry conditions across the western half of the US Midwest crop belt this week, with the pattern potentially extending into next week, raising concerns about yield potential.

In export markets, the USDA said US corn export inspections totaled 1,539,718 tons in the latest week, near the upper end of trade expectations, which ranged from 1,100,000 to 1,600,000 tons. Overseas, prolonged heat and drought continued to erode yield prospects in France, where the USDA now projects the smallest corn harvest in more than 30 years.

At the same time, crude oil prices pushed higher after US President Donald Trump reimposed a naval blockade on all Iranian ports and Tehran responded with strikes on US infrastructure in the region, further underpinning corn prices through the energy and biofuels channel.