The corn market and related exchange traded fund took a breather after a multi-day winning streak that propelled corn prices to their highest since mid-2017.
The Teucrium Corn Fund (NYSEArca: CORN) was flat Friday after rising 5.2% over the past two-weeks on back-to-back gains. Meanwhile, CBOT corn futures were 0.1% lower to $4.075 per bushel.
July corn has been hitting new highs as traders continued to focus on dry weather conditions that stressed the second-crop corn in Brazil, Reuters reported.
“Rains are expected to remain very limited across the region this week, with just a few showers expected in northwestern Mato Grosso. This will allow soil moisture shortages to continue to expand northward,” Radiant Solutions said in a daily crop weather note.
Second corn is planted after soybeans as a rotation crop in Brazil, the world’s second-largest exporter of the soft commodity.
INTL FCStone said dry conditions last month already caused it to reduce average yield projections for second corn to 5.15 metric tons per hectare from 5.37 metric tons in its previous April forecast, according to a separate Reuters report. The consultancy reduced its forecast of Brazilian second-corn output by 4% to 60.5 million metric tons.