Corn prices rose by 6% amid dry and hot weather in the US and attacks on Ukrainian ports

Corn prices on the Chicago Stock Exchange continued to rise on forecasts of dry and hot weather in the US and amid strikes on the Danube port of Reni in Ukraine.

Yesterday on the exchange in Chicago, September corn futures rose by 6.4% to $220.7/t, and December – by 6% to $223.7/t.

On the night of July 24, the Russian Federation attacked the port of Reni, which, after the completion of shipments from the Black Sea ports, became one of the main routes for the export of grain. This attack will lead to an increase in insurance payments and freight costs for barges and small vessels, as a result of which the purchase prices and incomes of farmers in Ukraine will decrease.

By striking Ukraine’s export terminals, the Russian Federation, as a terrorist state, provokes an increase in world grain prices in order to obtain maximum revenue for the budget, destroy Ukraine’s economy and increase the blackmail of Western countries with new flows of migrants and world hunger.

In the next 7-10 days in the US corn belt, heat of 33-38 oC is forecast without precipitation, and minor rains may pass only in a week. High temperatures add stress to soybean and corn crops, which is especially critical during the pollination period, when prolonged heat can dramatically reduce yields.

According to USDA’s weekly Crop Progress report, 68% of the U.S. corn crop was in the silking phase as of July 23, and the number of crops in good or excellent condition this week remained at 57% (61% last year).

Corn exports from the US for the week of July 14-20 decreased by 33% to 310,000 tons, and in total in 2022/23 MR amounted to 34.232 million tons, compared with 51.08 million tons on this date last year.

In the EU and Ukraine, low temperatures and abundant rainfall favor the development of corn crops and improve harvest prospects.