Corn futures drop on favorable weather, yield predictions

Corn futures drop on favorable weather, yield predictions

July numbers previously reached record highs on decreased supply predictions. Warm weather and rain will maintain favorable growing conditions, according to analysts.

December corn futures hit $6.7475 per bushel on the Chicago Board of Trade on June 14, a one-month low, on reports that favorable weather may boost yields in the U.S.

On June 10, July corn futures reached a record $7.9975 per bushel on the CBOT after updated reports decreased U.S. harvest predictions by 2.3%. “The markets are focused on rapid planting progress and improving crop conditions,” said Nate Smith, a broker at the Linn Group in Chicago. Warmer weather and some rain are expected to maintain favorable growing conditions. Roughly 69% of the U.S. corn crop was in good or excellent condition as on June 12, up from 67% a week earlier, according to the U.S. Department of Agriculture.

As of 8:29 a.m. on June 15, corn was trading at $7.51 per bushel.