The September December Corn Spread – 06/02/2022

September corn is trading about 10 cents per bushel premium to the December contract. Historically, the September/December corn spread has been a function of the US corn carryover. A tight US corn carryout supports the September versus the December corn contract. By the summer of tight years (as in 2022)  the US corn carryout is nearly settled and the September contract goes back to a discount to the December contract (a carrying charge structure) . One hazard to a carrying charge corn market this summer is the major disruption of corn and other grain exports from the Ukraine which could shift summer corn demand to the US.  and support September corn versus December corn