Corn Prices Soar as US Production Forecast Falls Short

Corn futures have reached a three-year high on the Chicago Board of Trade (CBOT) after analysts found that US crops are in worse condition than expected. The most-traded corn contract rose by 2.5% to $5.21 a bushel, its highest since August 2023.

US 2026 corn production is expected to fall below government forecasts due to subpar crops damaged by adverse summer weather. Pro Farmer's tour of seven major production states found that crops are struggling, leading to lower production estimates.

Traders are also concerned about the impact of an El Niño weather event on Brazilian corn production and Ukraine's ability to export wheat.