Corn futures prices rallied about $0.90 per bushel since the beginning of May.
The rally reflects expectations that planted acreage will fall well short of March intentions and on yield concerns associated with wide-ranging late planting.
Demand weakness continues to emerge in the export market, but supply issues look to overwhelm any decrease in demand. The release of USDA’s Grain Stocks and Acreage reports on June 28 looks to set the tone for summer corn prices.
The reduction in corn planted acreage by three million acres and corn yield by 10 bushels per acre in the June WASDE appears to be a harbinger of things to come this year. The June estimate of planted acreage of corn is generally expected to be far less than intentions of 92.8 million acres reported in March. Read more