(Bloomberg) -- Corn futures are headed upward for a second week as forecasts for US crops are cut and dry weather concerns lingers over Europe.
US production estimates for the grain were cut to 15.1 billion bushels by brokerage StoneX despite higher yields. Hot and dry weather in the European Union, Mexico and Ukraine are also seen impacting yields for coarse grain according to the UN’s Food and Agriculture Organization.
The most active futures contract has risen around 5% in the past two weeks after four consecutive weeks of declines. Strong forecasts for the US crop had driven prices below $4 per bushel for the first time since 2020.
“US export prices have increased and are now on par with South America and Ukraine and that could slow the current rally,” wrote analysts at The Hightower Report. If prices fall below $4 per bushel level again buyers may be encouraged back to US crops, they said.
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