"The price increase is due to the heat coming around June 15th," explained Joe Davis, a broker at Futures International. This heatwave could negatively affect corn development, potentially leading to lower yields and higher prices in the future.
Adding to the price rise, the US Department of Agriculture announced a significant corn sale to unknown buyers, further tightening supply concerns.
Additionally, July corn contracts, reflecting near-term harvests, saw a steeper increase compared to December contracts, as some traders adjusted their positions in anticipation of potential heat-related crop issues.
This development highlights the vulnerability of agricultural markets to weather fluctuations. While the US corn crop is currently in good condition, a heatwave could disrupt its growth and impact global grain prices.