Corn Prices Remain Resilient Amidst Harvest Pressure and Speculation

Despite the ongoing harvest and expectations of increased corn supplies, December corn prices closed at a one-month high of $4.97 1/2, defying the bearish sentiment. The recent surge in prices was supported by strong corn export sales and the possibility of unexpected factors influencing the market. While USDA estimates point to bearish fundamentals with the highest U.S. ending corn stocks in seven years and Brazil dominating the export market, recent upticks in export sales and concerns over hot and dry weather conditions during the growing season have contributed to the bullish case for corn prices. Speculative traders, who have been wrong three times this year, are heavily short, further adding to the potential for higher prices.