InfoSAWIT, CANBERRA – Corn prices on the Chicago futures market corrected on Monday, July 21, following a short-term rally last week that had pushed prices up by 3.8%. Market participants are currently balancing concerns over the impact of extreme hot weather on US corn yields with relatively ample global supply conditions.
The most active corn contract on the Chicago Board of Trade (CBOT) fell by 0.4% to $4.26 per bushel at 02:45 GMT. Meanwhile, soybean prices weakened by 0.6% to $10.29-1/4 per bushel, and wheat prices dropped by 0.4% to $5.44 per bushel.
These three major commodities remain near their lowest levels in several months due to sufficient global supply. However, forecasts of hot weather affecting key agricultural regions in the United States have raised concerns about potential yield declines, particularly for corn and soybeans.
According to Tobin Gorey, founder of the agricultural research firm Cornucopia, about 7% of the world's corn supply is currently threatened by adverse weather conditions, including in the US, Ukraine, and Russia. “The coarse grain market is facing serious weather threats for the first time this summer in the Northern Hemisphere,” he stated, as reported by InfoSAWIT from Reuters on Tuesday, July 22, 2025. “These concerns are significant enough to lift prices, and they likely began to manifest last week.”
On the other hand, US renewable energy policies continue to drive biofuel production, leading to more soybeans being processed into soybean oil, which recently reached its highest prices in two years. However, today's decline in soybean oil prices has also pressured the soybean market.
The nearing end of the winter wheat harvest in the US has slightly alleviated downward price pressure in the wheat market. Meanwhile, commodity funds were reported as net buyers of corn, soybeans, and wheat throughout last week, according to trader reports.
The US Department of Agriculture (USDA) is scheduled to release its weekly crop condition update today, which will serve as an important benchmark for the market in assessing production risks.
In Europe, France's agricultural office, FranceAgriMer, reported that farmers successfully accelerated wheat harvesting last week. However, corn conditions continue to deteriorate due to dry weather affecting several regions in the country. (T2)
