Corn prices hit annual high amid worst crop conditions since 1992
In the US corn belt, dry and hot weather persists, which worsens the condition of crops and becomes the main speculative factor in the growth of quotations to an almost annual maximum. Such conditions in the central regions of the Midwest will last for several more days, and rain and lower temperatures are expected already at the weekend.
According to NASS USDA data, as of June 18, the number of corn crops in poor or very poor condition rose to 12% (8% a week ago and 6% last year), and in good or excellent condition decreased to 55% (61% a week ago and 70% last year), which is the worst indicator for this time of year since 1992.
On the Chicago Stock Exchange, corn futures rose to near one-year highs, hitting November 2022 levels:
- July futures - by 4.2% to $264.2/t (+10% for the week, +17.5% for the month),
- December futures - by 5.2% to $247.5/t (+12.3% for the week, +23% for the month).
The Environmental Protection Agency has completed the preparation of RFS volumes for 2023-2025. Corn-based ethanol was held at 15.25 billion gallons in 2023, but that has been cut to 15 billion gallons in 2024 and 2025, which will put pressure on new crop corn prices.
The market had expected the RFS to spur an increase in all categories of renewable fuels after 2022, but the new decision caps renewable fuels at 15 billion gallons, slowing the energy industry's transition to low- or zero-carbon fuels, the association's president and CEO said. of renewable fuel RFA Jeff Cooper.
