Chicago corn falls ahead of USDA's supply demand report

On Wednesday, Chicago Board of Trade corn futures dropped as traders kept an eye on Black Sea conflicts and made adjustments before the US Department of Agriculture's supply and demand report on Friday. Soybeans and wheat also declined. The most actively traded corn contract on the Chicago Board of Trade (CBOT) fell 0.8% to $5.29-1/4 a bushel by 0307 GMT, while CBOT fell 0.6% to $7.42-3/4 a bushel and soybeans dropped 0.5% to $13.10-1/4 a bushel.

The grain markets are focusing on the upcoming USDA supply-and-demand forecasts, with concerns about low yields in the US corn Belt keeping a floor under corn futures. Weather in the US Midwest is expected to stay warm and dry in the coming weeks, reducing the risk of harvest delays and frost. According to Commodity Weather Group, 5% of the US corn crop had been harvested by last Friday, and 56% of the crop was rated in good to excellent condition.

On Tuesday, StoneX revised its estimate of the average US 2026 corn yield down to 182.9 bushels per acre from 184.8 in its previous report on August 4. Meanwhile, market participants remain cautious due to potential disruptions in Russian and Ukrainian grain exports from the Black Sea region. Despite diplomatic efforts by US peace envoys Jared Kushner and Steve Witkoff, a resolution to the war has not been achieved.

Ukraine, a major grain producer, has finalized its 2026 wheat harvest, yielding 24.91 million metric tons at an average of 4.94 tons per hectare, the agriculture ministry announced on Tuesday. China's soybean imports decreased by 1.1% in August from the previous year to 12.14 million tons, while the country's purchases totaled 74.11 million tons from January to August, marking a 1.1% increase from the previous year.

Commodity funds were net sellers of CBOT corn and net buyers of wheat, according to traders on Tuesday.