FranceAgriMer previously reported that crop conditions had deteriorated due to the heat, which is negatively affecting the wheat harvest in France. Preliminary government estimates indicate that extreme weather conditions may have damaged nearly one-third of France’s corn crop. Traders are also closely monitoring rising temperatures in the U.S.
Today, at the close of trading on the CBOT in Chicago, the most liquid corn contracts rose by 1.9%. The increase was also driven by U.S. holidays at the end of last week.
Joe Davis, director of commodity sales at Futures International LLC, noted that if the heat continues to reduce potential yields, corn and wheat prices will rise. He also emphasized that global stocks could decline, leading to increased demand for imports from the U.S. and South America.
The market is also closely monitoring news regarding trade between the U.S. and China following the Chinese government’s announcement that the two countries have reached an agreement to include agricultural products in their mutual tariff reductions. Typically, soybean processors in China begin purchasing significant volumes of the new crop from U.S. farmers in August, according to aProFinance articlebased on Bloomberg reports.
