We just closed another week with higher futures as the Mar-22 corn contract settled at $6.54 per bushel, up from a low of $6.38 per bushel last Tuesday.
Meanwhile, the Dec-22 harvest contract is rapidly approaching $6, closing the week at $5.9775 per bushel.
S&D and fundamental factors
Analysts are forecasting Brazilian corn production near 113 MMT, down from earlier projections but still a potentially record-setting crop. The second-season crop—Brazil’s largest of its three production cycles—is currently being sowed.
Weather, macro indicators, and news
At least one forecaster is predicting dry conditions in the Grain Belt to persist through the spring and possibly into the summer. Despite persistent dryness last year, U.S. corn managed to maintain an average yield of 177 bushels per acre providing some optimism. However, if this is to be the second consecutive year of sub-par precipitation, a more meaningful impact may be seen on yield.
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