FX.co ★ Corn Holds Near 3-Year High

Corn futures traded above $5.10 per bushel, hovering near their highest level since July 2023 as escalating crop concerns and weather-related risks continued to support prices. Severe heat and heavy rainfall have affected key corn-producing regions in China, threatening both yields and crop quality. From January through July, China imported 1.36 million tons of corn, a 61.3% increase year-on-year, and import demand could rise further if weather damage intensifies.

At the same time, worries about the US crop are adding additional support. In its latest report for the week ended August 23, the USDA lowered the share of the US corn crop rated good-to-excellent by three percentage points, to 57%. Robust export demand is also underpinning prices: cumulative US corn shipments are up 26% from a year earlier, even though weekly export volumes recently eased to 1.3 million tons.

In addition, the USDA reported a recent sale of 286,097 tons of US corn to Mexico, including 29,808 tons scheduled for delivery in the 2026/27 marketing year and 256,289 tons for 2027/28.