Corn Futures Top $5 as Crop Tour Finds Disappointing Yields

Corn futures prices have surpassed $5 per bushel for the first time since May, driven by disappointing findings from the Midwest Crop Tour. According to market analyst Ted Seifried, corn yields are significantly down in most states scouted, including South Dakota, Ohio, Nebraska, and Indiana.

The USDA's August World Agricultural Supply and Demand Estimates report found an additional 1.4 million corn acres and lowered yield to 180.7 bushels per acre nationally, but Seifried notes that the rally isn't just about production. He points to the USDA's raised export demand, which he attributes to concerns over a potential Super El Nino disrupting South American fertilizer supply and planting.

Seifried cautions against chasing the rally into September, citing 2012 as an example of corn often putting in its highs in August even in supply-short years. He suggests growers consider December puts expiring in November to stay protected while leaving room for further upside later in the marketing year.