Corn Prices Surge Ahead of Harvest Amid Yield Concerns

Corn prices are rising ahead of the harvest season due to strong demand and concerns about crop yields. Matt Bennett, CEO of AgMarket.net, describes this rally as 'as big of a contra-seasonal move as I can remember'.

Bennett attributes the increase in demand for corn, which has led to a decrease in carryout levels. He notes that US demand is at a record high, causing concern about crop yields.

The USDA's August crop production report had corn yield pegged at 180.7 bushels per acre, but a recent crop tour estimated average yield in the 170s. Bennett expects adjustments from the USDA in its upcoming September report, which could lead to further price increases.