USDA Predicts Lower Corn Supplies, Fuels Futures Rally

U.S. corn futures rose sharply on Wednesday after the U.S. Department of Agriculture (USDA) released a report predicting lower supplies and robust exports. The USDA projected that U.S. stocks at the end of the 2026/27 season will fall to 1.653 billion bushels, down from its July estimate of 1.790 billion bushels.

The increased demand for corn has been fueled by stronger export prospects, which have offset lower yields caused by adverse summer weather. U.S. farmers will harvest their second-largest corn crop on record this autumn, according to the USDA.

Soybean and wheat futures also moved higher, with soybeans rising 12-1/4 cents to $11.81 a bushel and wheat jumping 23-1/4 cents to $6.53-3/4 a bushel. The rally in corn futures was driven by concerns about potential supply disruptions to world markets following Ukraine's attack on grain terminals in the Russian wheat export port of Novorossiysk.