Corn Futures Soar in September Amid Looming Harvest Concerns
Corn futures have started September on a high note, hitting fresh contract highs after a historically strong August rally. This year's 15.9% gain in December corn is the largest percentage increase since 1980, and only the second largest nominal gain since 1980 behind 2011.
Average corn yields are expected to be well below market expectations, with the USDA pegging them at 180.7 bushels per acre after a Crop Production report on August 12. The Pro Farmer Crop Tour found a crop buffeted by extreme weather swings across much of the Corn Belt, with an average yield of 173.2 bushels per acre.
Historically, September has been a mixed bag for corn futures following strong August rallies. In six years since 1980 when August gains exceeded 8%, production concerns became more well known in August, similar to this year's situation. Prices have plunged in some years, giving up most of the August gains, while surging higher in others.