Corn futures prices in Chicago rose at the close of trading on Tuesday, continuing their rebound from recent lows, as US government data confirmed favorable conditions for this year’s corn crop.
Soybean prices declined as strong crop ratings weighed on the market, while wheat futures also dropped amid rising harvest volumes across the Northern Hemisphere that are casting a shadow over the market. Investors are awaiting US inflation data due later on Tuesday for further guidance, while continuing to assess the potential impact of the sweeping tariffs proposed by US President Donald Trump.
The US Department of Agriculture stated on Monday that 74% of the US corn crop and 70% of the soybean crop are in good or excellent condition — the highest July ratings since 2016.
Forecasts still point to a favorable mix of moderate heat and regular rainfall over the coming week across the US Midwest.
“US weather looks fantastic, but seasonal forecasts point to a general downturn,” said Peak Trading Research in a note. “Markets have shrugged off Trump’s new tariff wave and are now nervously awaiting today’s consumer price index reading,” it added, in reference to the CPI.
Corn regained some strength on Monday and during Tuesday’s trading, with analysts viewing the market as vulnerable to an upward correction from current low levels. Analysts at JP Morgan said, “We remain bullish on corn prices on the Chicago Board of Trade and expect the value to be attractive for consumers at these levels,” describing the corn market as being oversold.
Reuters calculations based on customs data showed that China, the world’s largest soybean buyer, imported record volumes of soybeans in June, driven by increased shipments from its biggest supplier, Brazil.
The National Oilseed Processors Association is expected to report that US demand for soybeans in June fell to its lowest level in four months, according to analysts, although it would still mark the largest June demand ever due to expanded processing capacity.
The wheat market is awaiting the results of an import tender from Algeria, which could boost potential demand amid plentiful harvests arriving across the Northern Hemisphere.
Corn
As for trading, corn futures for December delivery rose 0.3% at the end of the session to $4.19 per bushel.
Soybeans
Soybean futures for November delivery fell 0.5% to $10.01 per bushel.
Wheat
Wheat futures for September delivery settled down 0.5% at $5.38 per bushel.
