Updated
Updated · Bloomberg · Aug 13
Corn Futures Jump 4.6% After USDA Cuts US Yield More Than Forecast
Updated
Updated · Bloomberg · Aug 13

Corn Futures Jump 4.6% After USDA Cuts US Yield More Than Forecast

3 articles · Updated · Bloomberg · Aug 13

Summary

  • Chicago corn futures surged as much as 4.6% on Aug. 12, their biggest jump since June, after the USDA cut the U.S. corn yield outlook more sharply than traders expected.
  • Hot U.S. weather drove the downgrade, tightening supply expectations for America’s biggest crop and reversing the earlier focus on larger planted acreage.
  • Corn outpaced wheat, which was already rallying after an attack on a key Russian grain port heightened fears that Black Sea grain exports could be disrupted.
  • The move adds to a broader shift in grain markets after USDA’s August reports pointed to tighter 2026-27 U.S. corn stocks despite higher acreage and stronger export demand.

Insights

With private models predicting a massive milo yield crash, will Wednesday's USDA report trigger a shockwave across US grain markets?
As biofuel mandates consume half of US soybean oil, could a slight yield miss in the upcoming USDA report ignite a major price rally?
China is heavily favoring Brazilian soybeans, so can the US market rely on domestic biofuel demand to rescue prices if exports fall flat?