FX.co ★ Corn Extends Rally to 3-Month High

Corn futures rose above $4.70 per bushel, extending their rally to the highest level since May 18, as disappointing US crop-tour results intensified worries about tightening global supplies. The Pro Farmer Crop Tour reported that corn yields in Western Iowa and Illinois—the country’s two largest corn-producing states—have fallen below last year’s levels. These findings come on the heels of weaker-than-expected yield estimates from four other key Midwestern states surveyed earlier in the week, with results also lagging the tour’s three-year average.

Supply concerns have been further aggravated by adverse weather conditions, as severe storms and extreme summer heat have damaged crops across the US Corn Belt. Outside the US, Europe has faced successive heat waves, and France is now expected to harvest its smallest corn crop since 1980. At the same time, continued attacks in the Black Sea region have disrupted Ukrainian grain shipments, adding to fears over global corn availability.