The July corn contract traded on Chicago Board of Trade (CBOT) The futures contract closed this Thursday (11) with a sharp drop of 7.25 points and 1.73%, quoted at US$ cents 411.75/bushel; the September contract fell 7.75 points and 1.81%, to US$ cents 420.00/bushel. For the week, futures accumulated losses of 1.38% and 1.64%, respectively. In this trading session, cereal prices were pressured by new projections presented by the United States Department of Agriculture (USDA) in its monthly supply and demand report (Wasde). Among the main highlights, the department maintained its estimate for the 2026/27 US corn crop at 406.29 million tons, but revised upwards its projections for ending stocks for the 2025/26 and 2026/27 seasons. Globally, the USDA raised its production projection for the old crop from 1.312 to 1.326 billion tons and for the new crop from 1.295 to 1.300 billion tons. Global corn stocks are projected at 281.22 million tons at the end of the 2026/27 season (revised from 277.54 million tons), compared to 303.36 million tons at the end of 2025/26 (revised from 296.95 million tons in the previous report). Furthermore, the USDA also raised its estimate for the 2025/26 corn crop in Brazil and Argentina to 138.00 and 61.00 million tons – increases of 3.00 and 2.00 million tons, respectively, compared to the May reading. For the 2026/27 season, the department projects Brazilian corn production at 139 million tons and Argentinian production at 55 million tons. In parallel with the WASD report, the USDA reported that export sales for the 2025/26 crop year totaled 1 million tons in the week ending June 4th, a volume 13% higher than the previous week, but 15% below the average of the last four weeks. Net sales for the 2026/27 crop year totaled 926,900 tons during the period. Market attention remained focused on the predominantly favorable weather conditions for the development of the 2026/27 crop in the Corn Belt. The National Weather Service (NWS) indicates continued rainfall in several agricultural areas, including parts of Iowa and Illinois, although some of this precipitation is expected to be accompanied by severe weather conditions. Oil prices fell again by more than 2% on the international market, a factor that reduces the competitiveness of US ethanol produced from corn. Meanwhile, the DXY, an index that compares the strength of the dollar against major global currencies, traded higher throughout the day.
This text was translated by machine from Brazilian Portuguese.