Both a rise in the demand for corn and favorable weather contributed to an abundance of grain and the strengthening of the U.S.corn market on Monday. According to Reuters, corn for December delivery on the Chicago Board of Trade was up 0.6 percent to $3.74 a bushel by 1105 GMT. The contract slumped to a low of $3.64-1/4 last week.
Corn futures prices have recently hit their lowest since 2010 and have decreased by nearly one-third over the past three months, reports the Wall Street Journal.
Morgan Stanley said in a market note on Monday, "We see the near-term risks to corn prices as balanced, as U.S. export and ethanol demand should keep prices supported. While positive weather continues to skew the risk to yields higher, consensus is already baking in expectations of nearly ideal weather conditions through the remainder of the summer," according to Reuters.
The U.S. Department of Agriculture has projected 13.86 billion bushels of corn to be harvested this year, slightly below last year's record 13.93 bushels, as the U.S. Farm Belt has seen mild weather conditions, reports the Wall Street Journal.
The USDA put weekly sales of the grain at 1.14 million tons for 2014 through 2015, above market estimates.
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