Corn Futures Climb as U.S. Midwest Dryness Stokes Supply Concerns

Corn futures on the Chicago Board of Trade (CBOT) advanced on Monday, driven by concerns that dry weather in the U.S. Midwest could harm crop potential during a critical growth period. The benchmark December corn contract rose 8 cents to settle at $4.75-1/2 per bushel.

Weather Worries Drive Gains

The primary catalyst for the price increase is the lack of rainfall across key corn-producing states. The crop is entering its pollination phase, a crucial window where adequate moisture is essential for determining final yields. Prolonged dryness during this period can significantly reduce production potential, a risk that is prompting buyers to enter the market.

Traders are closely monitoring weather forecasts, as continued dry conditions could lead to downward revisions of U.S. harvest expectations. The market was projected to open 4 to 8 cents higher based on these weather-related supply concerns.

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Export Demand and Global Supply in Focus

Underpinning the market, the U.S. Department of Agriculture (USDA) reported on Monday a private sale of 100,000 metric tons of corn to Colombia. The sale is for delivery during the 2026/2027 marketing year, indicating solid international demand for U.S. grain.

Meanwhile, the harvest pace in Brazil is also being watched. According to a report from agribusiness consultancy AgRural, Brazilian farmers in the center-south region had harvested 49% of their second corn crop as of last Thursday. While this is an increase from 40% the week prior, it lags the 55% completion rate reported at the same time last year, potentially tightening the global supply picture.