US Farmers See Relief as Heatwaves Drive Up Crop Prices

Severe heatwaves sweeping across the US Midwest have led to a surge in crop prices, bringing relief to American farmers who have been waiting years for a rally. Corn futures have jumped about 15% since the end of July, surpassing the $5-a-bushel threshold and reaching their highest levels since 2023.

Farmers like Iowa's Dave Walton are taking advantage of the higher prices to sell their crops, with some even expecting black ink on their financials. 'We've been fairly aggressive selling into this rally, and so we're looking at black ink all the way across the board,' said Walton.

The US Department of Agriculture projects a 6.1% year-over-year increase in farmers' cash receipts from crops in 2026, while investors are wagering on a continued rally with net-bullish holdings in corn futures reaching record highs.