Corn futures in Chicago surged to the highest level since 2023 on Monday, closing at $5.155 per bushel, after a technical crop tour and updated estimates from Pro Farmer indicated a sharper-than-expected decline in U.S. production.
The most-traded corn contract reached an intraday peak of $5.2525 per bushel, extending a rally driven by adverse summer weather across seven major producing states. Pro Farmer’s latest projection for 2026 output stands at 15.344 billion bushels, a 9.9% drop from 2025 and the lowest since 2020, though still the third-largest crop on record. The average yield is estimated at 173.2 bushels per acre.
Wheat futures also climbed, closing up 0.25 cent at $6.995 per bushel after briefly touching its highest level in about two years. The gains followed a technical report released after the market close on Friday, which triggered a sharp overnight surge in corn prices.
Analysts at Futures International noted the market reaction was unusually strong. Joe Davis, director of commodity sales, said the overnight spike reflected shock over the production figures. "People were shocked to see that number," he said.
Additional supply concerns are emerging from outside the U.S. In Brazil, the El Niño climate pattern threatens to reduce corn output, while tensions between Russia and Ukraine continue to restrict wheat exports from the Black Sea region. Soybean futures, by contrast, fell 15.25 cents to $12.2425 per bushel, as traders weighed the broader grain market dynamics.
