In Chicago, the corn market saw a big drop, reaching prices like those in 2020. The cause is an improvement in the weather, leading to enhanced crop conditions across the US.
A 2.9% decline saw the benchmark futures stoop to their lowest since December 2020. These optimistic weather conditions have brightened the horizon for a potential bumper harvest, regardless of the USDA's recent adjustment in the crop's estimated size from its record peak to being the second largest.
Shedding light on this scenario is Susan David from No Bull Ag in St. Louis. "The saying goes 'Rain makes grain', and when paired with cooler temperatures, it’s a winning combination for grain growth," she comments. Speaking about the year's trajectory for corn, she adds, "The start of 2023 was rocky for corn, but Mother Nature's recent cool and damp touch has reversed early losses."
This year has recorded a drop of about 21% in corn's market price. This dip comes in anticipation of a fruitful harvest season in the US. Adding to this sentiment is Brazil, which is currently during a record-breaking corn harvest.
Source : wisconsinagconnection