Corn Futures Soar to 17-Month High Amid US Crop Yield Concerns

Corn futures have surged to a 17-month high as concerns over US crop yields intensify. The rally is driven by growing expectations of tighter supplies, with the Pro Farmer Crop Tour estimating the national corn yield at 173.2 bushels per acre, significantly lower than the USDA's August forecast of 180.7 bushels.

This implies a production level of 15.344 billion bushels, which is around 670 million below the government's estimate. The Pro Farmer Crop Tour surveyed yields in seven states, with Illinois reporting a yield of 184.19 bushels per acre, down from last year's 199.57.

The bullish outlook for corn futures is also fueled by strong export demand, which has already seen US corn export commitments exceed last year's levels by 24%. This surpasses the USDA's full-year projection, adding to the upward pressure on prices.