Corn Futures Surge to Lifetime Highs Amid Yield Expectations Decline
Chicago corn futures surged on Tuesday to reach new lifetime highs despite declining crop condition ratings and yield expectations. The most traded contract settled at $5.23-1/2 a bushel, up 8 cents from the previous settlement.
The price increase was driven by a decline in yield expectations for the United States, with analysts expecting a score of 59.9% on average, but receiving only 57%, the lowest since 2023.
Wheat futures also closed higher, but below multi-year records set the previous session. The Chicago Board of Trade's wheat contract settled at $7.03-1/4 a bushel, down from its peak of $7.15.
The growing supply of Russian wheat at a discount to US Wheat has helped temper the disruption to grain exports out of the Black Sea, but importers are increasingly looking for alternatives, driving up physical premiums within the European Union.