Yield Distress Continues to Exacerbate the Corn Values In the U.S

Nebraska (U.S):  Recently, corn prices have been trending upwards in the US on the back of the unprecedented heatwaves which have negatively impacted the country’s agriculture sector. Owing the sporadic late rains in some parts of the United States Corn Belt have aided crop yield expectations in many areas, but the substantial amount of corn yield is still hasn’t recovered due to the delayed rainfalls.

The extent of the drought has spread to parts of the southwest Corn Belt, with Nebraska suffering the most. It has also affected parts of western Iowa, South Dakota, and Missouri. Additionally, there are also drier regions in Indiana and Ohio and the dry weather across the Corn Belt also favoured the maturation and dryness of the corn crop. These weather conditions led to tight supply concerns in certain local markets of the U.S.

The offtakes from end-user industries were also decreased majorly from the ethanol-producing sectors. According to a market report, the estimate for the U.S. corn from 3.375 billion bushels in August to 3.325 billion bushels in September, Corn was used less for the production of ethanol. As per the latest estimated market report, for the marketing year 2022-23 (September-August), estimates for corn output were also drastically reduced, falling to 171.8 million bushels per acre from the most recent USDA projections of 175.4 million bushels/acre. Due to the low production, the values of Corn deaccelerated in the US domestic market.

Furthermore, delayed planting and recent dryness in the parts of America had raised anticipation of a reduction in U.S. corn yield estimate. As per the ChemAnalyst database, the price trajectory of Corn is expected to continue following the upward trend in the following months due to decreasing production and increasing demand from the end-use industries.