In the third quarter of 2023, the corn sector wrapped up the 2022-2023 marketing year and entered the 2023-204 marketing year. Geopolitical tensions and international dynamics continue to be factors in the market.
Looking ahead, a National Corn Growers Association webinar says the war in Israel could have larger implications for corn if it spreads throughout the Middle East. On the macroeconomic side, interest rates continue to rise while the economy remains strong. That makes it a challenge to forecast an economic landing, especially considering geopolitical factors. Despite widespread drought across the Corn Belt during the growing season, the U.S. is positioned to produce one of the three largest corn crops on record.
That positions the U.S. to have enough grain needed to fulfill demand. Even with the strong competition in the world market, the outlook for demand from ethanol, feed, and exports is more positive than it was last year.