On Thursday, corn prices took an uptrend after touching a multi-month low level in the previous trading session.
The most active maize futures edge up 1.35% or 8.12 points to $608.12 per metric ton. This rebound came after a significant plunge of 18.12% to $609.38 per metric ton yesterday.
Accordingly, Wednesday’s upturn came after the US Department of Agriculture reported rain showers and thunderstorms from Nebraska to Ohio. This weather condition greatly benefited the corn and soybean fields.
In a separate weekly report, the USDA rated 64.00% of the maize crop as good to excellent as of Sunday. This result came 3.00% lower than the previous week, worse than the average market estimate of a two-point decline.
Still, experts anticipated Brazil to increase its corn production, reaching a new record. This upbeat sentiment came amid the strong demand and diminishing uncertainty over fertilizer availability.
Subsequently, the maize area forecast for 2022-23 is 22.50 million hectares. The figure was up from 21.70 million in 2021-22. So then, the projected production is at 120.00 million tonnes, a slight jump from the prior outlook.
Corn, Soybeans, and Wheat rebound from sell-off
Eventually, bargain buying helped support prices from their recent sell-off. Moreover, investors remain uncertain about the size of the upcoming US corn and soybean harvests. Grain markets are also uncertain about the future of the disrupted crop exports from Ukraine.
In wheat, the most active contract soared 2.96% or 23.90 points to $830.00 per metric ton. It also recovered from near a five-month low yesterday.
In addition, French consultancy Agritel anticipated war-hit Ukraine to harvest 21.80 million tonnes of wheat this summer. This figure came in below the record 32.20 million collected last year.
Like corn, US soybean futures gained 2.70% or 37.88 points to $1,484.00 per metric ton. However, the commodity remained under pressure from the bleak soy oil market.