Jul-23 corn futures dropped significantly last week, settling Friday at the contract’s lowest value since October 2021. Futures settled below the lower Bollinger Band for the last three sessions. Last week’s decline partly reflected weak demand for U.S. corn in the global market.
New-crop Dec-23 futures uncovered modest near-term support last week. Friday’s close was the contract’s lowest figure settle since April 2021.
U.S. corn plantings were 65 percent complete as of May 14, well ahead of both last year’s pace and the five-year average. An estimated 30 percent of the crop had emerged already, compared to 13 percent last year and the five-year average of 25 percent. Thus far moisture has been adequate in most of the Corn Belt, providing a good start for this year’s crop.
The Ukraine Black Sea grain corridor agreement has been extended for two months. Also in Ukrainian market news, planting of spring grains there has reached 86 percent completion according to its agriculture ministry. Estimated corn plantings are 3.3 million hectares of corn.
The full version of this commentary appeared on our IQ platform on May 19, 2023. Further information, statistics, and pricing for the corn market are available to IQ subscribers. Learn more about becoming a subscriber.
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