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Corn Yields Dip, Futures Climb on Supply Worries
22 Aug
Summary
- Illinois corn yields are down significantly from last year.
- USDA reported 232,892 MT of old crop corn sales.
- International Grains Council lowered world corn production.
Corn futures experienced a notable increase on Thursday, with most contracts trading between 3 ½ to 5 cents higher. This upward movement occurred despite some fading from earlier session highs. Data from the ProFarmer Crop Tour revealed that Illinois corn yields averaged 184.19 bushels per acre, marking a significant decrease of 7.71% from the previous year and 7.52% below the three-year average.
Further contributing to market dynamics, USDA Export Sales data for the week of August 13 showed 232,892 MT of old crop corn sales. New crop business was tallied at 816,097 MT, a figure that represents a 4-week low and a 71.5% decrease from the same period a year ago, suggesting a pullback in demand due to the ongoing rally.
Globally, the International Grains Council revised its world corn production estimate downward by 1 MMT to 1.305 billion MT. Consumption was also adjusted down by 1 MMT, leaving global stocks unchanged at 293 MMT.
