Grain Futures Surge on Lower Corn Yield Estimates
Grain futures started the week off strong, with corn prices seeing a notable increase. December corn is up by 9 1/4 cents, while November soybeans are down by 3 1/2 cents. The September contracts for wheat in Kansas City and Chicago have also seen an uptick, rising by 6 1/4 cents and 6 3/4 cents respectively.
The strong performance of grain futures can be attributed to several factors. ProFarmer's Midwest tour estimated an average U.S. corn yield of 173.2 bushels per acre, which is lower than the USDA forecast of 180.7 bpa. This would be the lowest U.S. yield in six years if accurate.
On the other hand, soybeans are facing mild pressure due to a record yield forecast of 53.3 bpa from the same tour. This would extend the already record-large crop forecast for 2026. Wheat prices are also supported by the ongoing export cutoff in the Black Sea.