USDA Corn Yield Cut Sparks Biggest Price Gain Since June

The USDA recently released its corn yield cut, which was larger than expected. This move led to a significant increase in corn futures prices, with the biggest gain since June.

The agency now projects 180.7 bushels per acre, down from 186.5 bushels recorded last year and below the previous estimate of 183 bushels. This reduction is due to hot weather stress on crops across the Northern Hemisphere and a smaller U.S. harvest than expected.

Alexis Maxwell, a Bloomberg Intelligence analyst, noted that the revised survey methodology found more acres earlier than usual, which could help rebuild trust in USDA forecasts.