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Corn Futures Climb as USDA Lowers US Crop Condition Rating
Corn futures gained on Tuesday after the U.S. Department of Agriculture (USDA) lowered its assessment of the nation's crop conditions, raising concerns about potential yield reductions.
Crop Conditions Worsen
In its weekly report released Monday, the USDA rated 60% of the U.S. corn crop in "good-to-excellent" condition as of Sunday. This represents a decline of 1 percentage point from the previous week.
According to the agency's data, this is the lowest quality rating for the 33rd week of the calendar year since 2023. The downgrade reflects ongoing stress on crops from unfavorable weather in key growing regions.
AdMarket Impact
In response to the potential for a tighter supply outlook, prices on the Chicago Board of Trade (CBOT) moved higher. The most-active CBOT December corn contract was last trading up 2-3/4 cents at $4.92-1/4 per bushel.
Concerns over yield were reinforced by initial findings from an annual crop tour. Scouts surveying fields in South Dakota on Monday reported that the state's corn yield prospects are below both last year's figures and the three-year average, a result attributed to a hot and dry summer.
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