Commodity Close Up: Corn Market Update

Commodity Close Up | Corn

1:59

Each week, we spotlight one agriculture commodity, bringing you the latest market outlook, production trends, and the factors influencing prices on the Kansas Farm and Ranch

Radio Network.

In this first segment of Commodity Close-Up, Jared Law an area manager for The Anderson's spoke about the corn markets, including what they closed like yesterday, and some things farmers should keep in mind.

"The futures were down today. We had a pretty big up movement yesterday, primarily driven by wheat, but conflict in Russia, Ukraine, kind of flip-flopping Ukraine, attacking Russian ports, which affects both wheat and corn coming out of the Black Sea region. So this is different than some of the new that we've seen in this war. I think moving forward, in addition to Iran, we're going to have to now refocus on both of these conflicts and how they could move the markets," Law said.

Law also covered what current weather trends are doing to the area.

"Domestically, though, dry weather in the western corn belt is a big topic of discussion.

I think that you have to look back at last year. We had pretty benign weather.

Today, the USDA has new crop. It was a 183. That's where we've got some factor in there to move. Either way, we're still early in the growing season. I think some other factors to watch out on corn is the planted area with prices doing what they're doing and the weather opportunities to present themselves. I think that being rallying in the back end of China buying, maybe, well, some additional corn acres, but by and large, it feels like corn acres could very possibly be.," Law said.

He added what other macro factors have contributed to the markets.

"Other macro factors affecting corn, obviously, inflation seems to be going sideways.

I wouldn't say stagnating yet. We've got the USDA, Canada, selling those negotiations, hopefully trying to get a trade deal done that's favorable, always for ag. There's a few caveats in there specific to Mexico that I think the U.S. Green Council and National Green and Feeder are looking at. Things look favorable in the export environment overall," Law concluded.