Corn Prices Soar on USDA Yield Cut, Hot Weather Impact

Corn futures surged in Chicago by as much as 4.6% after the US Department of Agriculture reported a bigger-than-expected reduction in yield due to heat waves across the Northern Hemisphere.

The USDA estimated the US corn yield at 180.7 bushels per acre, down from 183 last month and off sharply from last year's record of 186.5.

Despite the cut in yields, production will rise slightly to 16.013 billion bushels, making it the second-biggest US harvest ever.

The USDA also raised its acreage forecast for corn, which may help improve the standing of the forecast after reports last season sent corn prices crashing.