Average corn prices in August dropped from July’s highs and fell to over two-year lows. They averaged USD 476 cents per bushel in the month, 7.2% lower than July’s price and down 24.7% year on year. On 31 August, the spot price was USD 461 cents per bushel, down 8.5% month on month.
Corn prices began retreating in late July on expected weather improvements in the Northern Hemisphere and signs of weak demand. Prices remained subdued through August. Although the USDA’s WASDE report cited lower output estimates from July, they came in only slightly below market expectations. Supply-side pressures were also more than offset by smaller demand projections. Meanwhile, uncertainty around shipments from the Black Sea region likely prevented a steeper retreat in prices. After July’s collapse of the U.N.-brokered grain deal, Russia attacked Ukrainian ports and grain storage facilities throughout August. Meanwhile, in August, Ukraine launched a humanitarian corridor in the Black Sea to release cargo ships trapped in the area, while the U.S. announced efforts to boost export capacity through the Danube River.
Corn CBOT (prices in US¢/bu, aop)
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