$5 Corn Futures Surge on Low Yields and Strong Export Demand

Corn futures prices have surged to $5 per bushel for the first time in 18 months, driven by lower yield forecasts and high export potential. According to Abygail Peterson, an agricultural economist with the Nebraska Farm Bureau, 'We're going to see some higher prices, and that's because those lower yields are going to result in a lower supply.'

The USDA has forecasted a 13% decline in corn yields in Nebraska this harvest season, while total corn crop production is estimated to be nearly 1.8 billion bushels. This is still the third-highest forecast of any U.S. state this year.

Exports and global demand for Nebraska ag products are expected to drive prices upwards. The USDA estimates that exports will continue to fuel demand, particularly with beef and pork prices reaching all-time highs and driving the need for grain-based feed. European crop production is also down this year, opening up a share of the global export market for the U.S.

Farmers are facing high input costs for products like fertilizer and gasoline, making it difficult to operate at a profit even with higher prices.