FX.co ★ Corn Futures Rally to 17-Month High

Corn futures climbed toward $5 per bushel, reaching a seventeen-month high as mounting concerns over US crop yields bolstered expectations of tighter supplies. The Pro Farmer Crop Tour pegged the national corn yield at 173.2 bushels per acre, well below the USDA’s August forecast of 180.7 bushels, implying production of 15.344 billion bushels—about 670 million less than the government’s estimate. Yield figures from all seven states surveyed came in below last year’s levels, with Illinois at 184.19 bushels per acre, down from 199.57 bushels a year earlier. Robust export demand is further underpinning the bullish tone, with US corn export commitments already 24% higher than a year ago and surpassing the USDA’s full-year projection. At the same time, hot, dry conditions across parts of the US Corn Belt are exacerbating crop stress, while adverse weather in Europe and ongoing disruptions to Ukrainian grain shipments continue to fuel concerns over global supply.