USDA Yield Cut Sparks Sell-Off in Corn Futures
Corn futures are trading lower on Friday, down by 2 to 3 cents at midday. The USDA's monthly Crop Production report showed a significant cut in US corn yield, with production declining 213 million bushels due to reduced harvested acres. The new crop carryout was also adjusted downwards by 86 million bushels as the World Ag Outlook board increased exports and added imports. Meanwhile, export sales data revealed a total of 79,788 metric tons of 2025/26 sales in the week of September 3, exceeding trade expectations for net cancellations.
The USDA's yield cut has sparked a sell-off in corn futures, with prices dropping across the board. The nearby cash price is down by 2.5 cents at $4.85.50, while the December contract is down by 2.5 cents at $5.31.25. The market reaction to the yield cut is seen as a fact-based sell-off rather than a speculative one.
The Barchart Disclosure Policy notes that Austin Schroeder did not have any positions in the securities mentioned in this article.