Commodities
Home›Commodities›Agriculture›Corn futures jump after USDA cuts US yield more than e…
Corn futures jump after USDA cuts US yield more than expected
US corn futures rose as much as 4.6% in Chicago after the USDA pegged yield at 180.7 bushels per acre, while it also lifted the acreage forecast.
Corn futures surged, climbing as much as 4.6% in Chicago, after the US Department of Agriculture cut the projected US corn yield by more than analysts expected, citing hot weather stressing fields across the Northern Hemisphere. LiveMint Markets, citing Bloomberg data, said the move came as heat waves pushed analysts to lower harvest estimates in the US and parts of Europe.
The USDA estimated US corn yield at 180.7 bushels per acre, down from 183 last month and well below last year’s record of 186.5. The agency still projected production would rise slightly to 16.013 billion bushels, described as the second-biggest US harvest ever, with some states, including Iowa, expected to see record yields.
The USDA also raised its corn acreage forecast, a shift from the prior season when major revisions were made in January. The agency said it is working to improve forecast analysis, including adding satellite imagery and field checks to supplement tens of thousands of survey responses from farmers.
Beyond corn, the report coincided with broader grain market pressure tied to the Ukraine-Russia conflict. LiveMint Markets noted corn gains outpaced wheat, which was already rising earlier Wednesday amid concerns that an attack on a key Russian grain port could disrupt Black Sea exports, while the USDA trimmed Russia’s wheat export outlook by 500,000 tons and Ukraine’s by 1 million.
Latest closeWheat $653.00 ▲3.6%|Corn $481.00 ▲10.1%