US Corn Prices Soar on Record-Low Yields

Unseasonal weather conditions have led to lower corn yields in the US, causing prices to surge. This year's extreme heat and drought affected many areas, particularly the western corn belt, while flooding and excessive rain impacted the eastern corn belt.

The Pro Farmer Crop Tour reported lower-than-expected yields and pod counts, prompting the USDA to reduce its yield estimate for corn in the August World Agricultural Supply and Demand Estimates (WASDE) report from 183.7 bushels per acre to 180.7 bpa, causing prices to increase.

The crop condition ratings also dropped three percentage points to 57% good/excellent, the lowest since 2023, further fueling higher corn prices. Soybean yields were slightly lower as well, with the overall yield estimate remaining steady at 52.9 bpa.

Producers who have sold half or more of their crops are advised to consider buying call strategies in March or May in case the crop continues to shrink and demand stays firm.