Corn Futures Hit New Contract Highs on Lower Yields

Corn futures reached new contract highs on Monday, climbing as high as $5.22 1/4 before closing at $5.15 1/2 and up 7 cents.

The increase was attributed to lower corn yields from the Pro Farmer crop tour, estimating 173.2 bu. per acre, which is 10 bu. off trend line.

However, Alan Brugler of A&N Economics stated that if the market were trading with this number, prices would have closed much higher.

'I think we're probably trading 176 to 178 at this price level,' he said, 'probably more like 178. Tighter ending stocks, but not dramatically tighter.'

The market needs confirmation of lower yields in the September WASDE report to go higher in corn.