Corn Extends Wednesday Rally on Dry Weather, Wheat Strength
AI Market Summary
US corn futures rose across contracts as a persistent 7-day dry forecast in the Western Corn Belt tightened supply expectations, with additional spillover support from wheat's limit-up move. Spot corn strengthened as well. Near-term focus shifts to USDA weekly export sales, which could validate demand. Softer ethanol production and higher inventories signal weaker processing demand, but weather risk is currently the dominant driver.
Impact level
● Medium
AI InsightAI Insight
▲ Bullish
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U.S. corn futures finished Wednesday higher across all contracts, up 5 to 9 cents, as forecasts call for another week of persistent dryness in the Western Corn Belt and strength in wheat spilled over into corn. The average cash corn price rose 9 cents to $4.1775 per bushel.
Traders are looking to the U.S. Department of Agriculture's weekly export sales report due Thursday. Market expectations for old-crop corn sales are pegged at 0.5 to 1.0 million metric tons.
EIA data showed ethanol production declined on the week while inventories increased, pointing to softer downstream processing demand. Weather-driven risk remains the primary focus, limiting the impact of the bearish ethanol figures.
