Market reaction
Corn futures traded higher on the Chicago Board of Trade on Tuesday, retracing some of the steep losses seen in the prior session after the U.S. Department of Agriculture reduced its weekly crop condition rating by more than analysts had expected. The USDA reported that 63% of the corn crop was rated in good-to-excellent condition as of Sunday, down from 67% the previous week. That reading missed the average analyst estimate of 65% good to excellent.
CBOT December corn (CBOT:CZ26) was last up 1-1/2 cents at $4.75-1/2 per bushel. Across the board, prices ranged from unchanged to gains of 2 cents per bushel.
Weather and outlook
The decline in the weekly condition rating followed hot and dry weather conditions across the Midwest. Forecasters, however, said cooler and wetter weather is expected across much of the Midwest following hot conditions over the weekend, a development that may influence crop prospects and market sentiment in the near term.
Export sales
On Tuesday the USDA also reported a private export sale: 197,272 metric tons of U.S. corn were sold to undisclosed buyers for shipment in the 2026/27 marketing year. The notified sale adds a tangible demand element to market dynamics even as weather and condition ratings remain focal points for traders.
Market context
Despite the supportive read from the USDA condition update, gains in corn were limited by broader selling pressure across commodities markets. Lower crude oil prices led commodity declines that capped corn's upside on the day.
Takeaway
Tuesday's trading reflected a mix of supply-side concern after a weaker-than-expected weekly crop condition score and demand-side influences from export sales and wider commodity market moves. Weather forecasts pointing to cooler, wetter conditions could alter near-term crop expectations, while cross-commodity price action, notably in crude oil, continues to temper advances in corn.