The price of corn declined over 2% during the past week on signs that demand was decreasing for supplies from the US, the world’s biggest producer and exporter, as growers in France and Ukraine boosted output with cheaper corn.
 
Reports published earlier in the week showed that Ukraine's August grain exports quadrupled from July, while the corn harvest in France may reach 15 million metric tons, up from 13.8 million a year ago. The week’s decline in corn futures, however, ceased this morning as prices advanced on speculation that production in the US will be lower than estimated after dry conditions harmed crops. Analysts expect US corn production to be smaller than the government forecast last month after unusually warm, dry weather in July and August eroded corn yields. While earlier in the growing season, plant growth was stunted by delays in planting following floods and cool temperatures.
 
This added to speculation that corn inventories will be lower than expected, and in turn pushing its price higher. A report released earlier in the week showed that production of the nation’s largest crop will fall below the US Department of Agriculture’s forecast in August. Production may total 12.554 billion bushels, compared with the government’s estimate of 12.914 billion. Corn futures for December delivery gained as much as 0.5% to $7.515 a bushel.