On Friday, corn prices declined due to a positive planted acreage report from the United States Department of Agriculture.
Corn futures for December delivery went down by -0.74% to $502.25 per metric ton on July 07’s Asian afternoon session.
Analysts expected that the USDA’s planted acreage report, released on June 30, would not shock the markets. Based on experts, the data was supposed to be quiet. However, the department always had a few surprises.
Moreover, acres were important for corn since the USDA added acres in several states like the Corn Belt.
The additional grounds for the crop will increase a reasonable amount of production. On the other hand, most of the plots added were located at some fringe areas. Minnesota and South Dakota witnessed an increase. Further south, Texas received more acres.
According to other experts, more enormous acres usually bring bearish factors to corn prices. However, they commonly see lower yields when record plots are added to fringe areas.
In addition, as weather issues continuously circulate in some US states, it brought some rain in recent weeks. But they need more rain to drop weekly since the crop is entering its crucial reproductive stages.
Based on the USDA’s report, speculated planted corn grounds hit 94.10 million. It is lower than the department’s forecasts of almost 92.00 million from March.
US Harvest Crashes Corn Prices
Favorable weather conditions in the US and Brazil helped increase corn supplies this year, dragging down prices.
A significant agricultural nation, Ukraine, is anticipating a higher output this year. Despite the ongoing war, early data stated that many farmers had planted crops this year.
Also, Brazil is experiencing good weather patterns, which could lead to more robust corn production. On the other hand, Argentina is suffering from a major economic crisis weighing its currency to a low level. It is greatly affecting the country’s agricultural sector.
In addition, a vital risk of corn is the El Niño weather phenomenon. This week, it was confirmed that the weather event already started. It could bring higher-than-expected rainfall in some areas and dry weather in other places.
