CBOT Grain Futures Climb Amid USDA Estimates and Crop Yield Concerns

Grain futures on the Chicago Board of Trade rose during the week ended Aug. 19, following the USDA's bullish August supply/demand estimates.

The December corn contract gained 17.25 U.S. cents per bushel to close at US$4.98/bu., while November soybeans jumped 54 cents at US$12.3725.

According to Tom Lilja of Progressive Ag, the trade wasn't surprised by declining yields in the western U.S. Corn Belt but was instead caught off guard by lagging yields in eastern parts.

Lilja noted that markets are reacting to a potential reality that the eastern Corn Belt is not as good as everyone expected.

Pro Farmer tour data showed underperforming corn and soybean yields compared to last year, with South Dakota's corn yield down 14.4 per cent from last year at 149.09 bushels per acre.