Corn and soybean futures have drawn attention from managed funds seeking inflation hedges. Corn traded at $4.94, soybeans at $13.31, with open interest hitting a five-week high—indicating sellers may soon face significant upward pressure. A few weeks after the market plunge, Bessent announced on social media that the U.S. was prepared to deploy billions of dollars to support the South American country. The latest USDA World Agricultural Supply and Demand Estimates released last week on Friday, September 12, contained multiple bearish indicators for US corn and soybean prices. Despite a negative price reaction in the immediate wake of the report release, new-crop corn and soybean futures prices were up on the day. This article considers what this price reversal might imply about market consensus on current supply and demand fundamentals. Generally, corn and soybean prices have been resilient despite elevated levels of negative sentiment around both demand and supply, including the prospect of record US yields for both crops. Corn and soybean futures eased slightly following profit-taking from last week’s rally. Corn closed at $4.90, soybeans at $13.25, but fundamental indicators remain supportive, especially with delayed planting in major South American regions.
