Corn Erases 2024 Losses on Concerns Over Tight Global Supplies

Corn climbed for a fifth day — erasing this year’s losses — as poor weather and pests spur concerns over the global supply outlook. Futures in Chicago briefly touched $4.72 a bushel, before trading around $4.70.

The US Midwest has been hit by wet weather which has delayed planting, while Brazil’s safrinha crop area has been baked by dry and hot conditions. Last month, Argentina reduced its estimate for the nation’s 2024 harvest due to damage from bacteria being spread by a plague of leafhoppers.

The US Department of Agriculture is scheduled to release its key supply and demand report on Friday, and analysts surveyed by Bloomberg predict the estimate for 2023-24 global corn stockpiles will be trimmed.

In China, soybean meal prices surged after heavy rains hit southern Brazil, the top supplier and exporter of the oilseed. Futures on the Dalian Commodity Exchange rallied almost 3% to their highest level since December. They are up 5% so far this week. Corn futures rose more than 1%.

“There are worries over whether expectations for a bumper harvest in South America can be achieved after heavy flooding in Brazil,” said Zhu Rongping, analyst with China-based commodity consultancy Mysteel. “Dalian prices rose significantly because of that. Domestically, supplies are ample while demand remains quite weak.”

Tags: wet weather, corn, prices, US, soybean meal, crop