Corn Futures Decline from Monthly High on Profit Taking

Corn futures declined on the Chicago Board of Trade on Wednesday as traders took profits after an early-session surge to a one-month high. Updated weather forecasts showing reduced heat stress for U.S. crops also weighed on prices. The September corn contract fell 8-3/4 cents to $4.35 a bushel. The contract had earlier risen to $4.44-3/4. The December corn contract fell 8 cents to $4.56-1/4 a bushel, after retreating from $4.65-3/4. This was the highest level since June 3. New weather forecasts lowered the expected temperature for the Midwest in mid-July. Concerns about stress for corn crops entering the pollination phase eased. A stronger dollar also pulled down CBOT grain prices, making U.S. grains less competitive in global markets. CBOT grain futures showed a limited response to a 5% increase in crude oil prices. Crude oil rose after U.S. President Donald Trump said a temporary agreement to end the war with Iran was 'done.' The U.S. Energy Information Administration reported corn-based ethanol production. Production was 1.093 million barrels a day for the week ending July 3, down 24,000 barrels a day from the previous week. U.S. ethanol stocks fell to 23.928 million barrels, down 762,000 barrels from the previous week. This was the lowest level since January. The decline in corn futures may increase volatility in global grain markets. Corn production and trade are critical for food security in many countries. Therefore, fluctuations in corn prices can be an important indicator for the global economy. Under the title 'The Impact of Corn Price Fluctuations on the Global Economy,' this decline in corn futures could have significant consequences for global grain markets and food security.