US Corn Prices Hit Highest Level Since 2023 as Heatwaves Hammer Crops

For American farmers like Dave Walton in Iowa, recent sweltering temperatures have brought a long-awaited crop price rally. The heat's threat to yields has driven corn futures up around 15% since late July, surpassing $5-a-bushel and reaching the highest levels since 2023.

This surge is rippling through the farm economy, with higher bids at grain terminals and elevators allowing growers to hedge their risks using futures contracts. Walton's farm has seen profits across the board due to his aggressive selling into the rally.

The rally has raised hopes for a rebound in the American farm economy, with data from the US Department of Agriculture projecting a 6.1% year-over-year increase in farmers' cash receipts from crops in 2026. Investors are betting on continued growth, with net-bullish holdings in corn futures reaching an all-time high.

However, after years of depressed prices and rising costs, growers remain cautious, seeking more evidence of sustained improvement before investing in big-ticket items like machinery. Timely rains in eastern Iowa have given Walton reason to expect a decent soybean crop, but he still wants another year of solid profitability before making significant purchases.