Corn futures fell Tuesday as ample supply considerations thwarted America’s largest cash crop. It is the recent buying and selling volatility in the commodities sector as the pandemic and financial reopening distorted markets and led to massive hypotheses in areas like wood.
Corn futures for the July offering fell 6% Tuesday afternoon to $ 6.18 a bushel, a monthly low. Corn came under pressure a day after the U.S. Department of Agriculture said in a Crop Progress report that U.S. farmers had planted 90% of common corn acreage by Sunday, ahead of the five-year rate of 80%.
The above-average planting, which was attributable to adequate rainfall in the American Midwest, appeared to counter concerns arising from continued Chinese demand for corn. As with other agricultural commodities, corn has risen in price over the past 12 months as companies work to prevent future inflation and replenish inventories as economies return to normal activities after the Covid-19 pandemic.
Including Tuesday’s pull-out, corn futures are up 28% in 2021 and up 95% over the past year. Corn is an important element in many supermarket appliances, from tortilla chips to bourbon. About 40% of the US crop is mixed into motor gasoline.
China has been buying huge amounts of corn in recent months to fatten and exchange pigs it killed during an African swine fever outbreak prior to the coronavirus pandemic. Soybeans fell 10 cents to $ 15.13 a bushel in July, while wheat fell 5 cents to $ 6.57 a bushel.