Why Have Corn Prices Been Down?

Corn prices have been on a downward trend recently, due to a combination of factors, including:

• Large crops in the U.S. and Brazil: Both the U.S. and Brazil are expected to have large corn crops in 2023. This is due to favorable weather conditions and increased plantings. Increased supply has helped to put downward pressure on prices. The U.S. is expected to have a record corn crop in 2023, with production of 15.7 billion bushels. Brazil is also expected to have a large corn crop, with production of 116 million tons. These large crops will help to increase global corn supply, which will put downward pressure on prices.
• Weak demand from China: China is a major importer of corn, but demand has been weak in recent months. This is due to a number of factors, including the COVID-19 pandemic and the government’s efforts to reduce food inflation. Weak demand has also helped to put downward pressure on prices.
• The war in Ukraine: The war in Ukraine has disrupted global grain exports, which has led to an increase in corn prices. However, as the war appears to be winding down, this factor is becoming less of a concern.