Corn Futures Reach One-Month High Amid Weather Concerns and Higher Oil Prices

Corn futures on the Chicago Board of Trade closed higher on Monday, with December contracts reaching their highest level since June 2, as investors monitored dry weather across parts of the U.S. Corn Belt alongside stronger crude oil prices.

Settlement prices

1. September corn: $4.41 per bushel (+1.5 cents)
2. December corn: $4.63¼ per bushel (+2.25 cents), after reaching an intraday high of $4.69½, the highest level since June 2.

Weather remains in focus

Forecasts indicate hot and dry conditions across parts of the western Corn Belt this week, with the pattern potentially continuing. Agronomists generally consider the pollination period one of the most yield-sensitive stages of corn development, and prolonged heat or drought during this period may reduce yield potential.

Higher oil prices support sentiment

Crude oil rose sharply after Trump said he was seeking to reinstate a U.S. naval blockade on Iranian vessels, contributing to concerns over energy shipments through the Strait of Hormuz.

Corn and soybeans can be influenced by movements in crude oil prices because both are important feedstocks for biofuel production, although grain prices are also affected by weather, export demand and broader agricultural market conditions.

Investors are expected to continue monitoring U.S. weather conditions, crop development and energy prices for further indications of potential impacts on corn supply and biofuel demand.

Sources: Reuters; CBOT settlement data.