Corn Futures Rise as USDA Forecasts Tighter US Supply

Corn futures on the Chicago Board of Trade (CBOT) rallied on Wednesday after a U.S. Department of Agriculture (USDA) report projected tighter domestic supplies and strong export demand.

Soybean and wheat futures also moved higher, with wheat prices supported by concerns over potential global supply disruptions in the Black Sea region.

USDA Lowers Stockpile Forecast

The USDA's latest report estimates that U.S. corn inventories at the end of the 2026/27 marketing year will fall to 1.653 billion bushels. This is a notable decrease from the agency's July forecast of 1.790 billion bushels.

The department attributed the downward revision primarily to stronger-than-anticipated export demand and lower beginning supplies. Despite unfavorable summer weather that has reduced yield estimates, the USDA noted that expanded planted acreage is still expected to result in the second-largest U.S. corn harvest on record.

Market Reaction

Ad

Following the report, agricultural commodity prices saw broad gains. As of 12:30 PM Central Time, the benchmark CBOT corn contract had risen 18.25 cents to trade at $4.78 per bushel.

Other key movements included:

• Soybean futures increased by 12.25 cents to $11.81 per bushel.
• Wheat futures jumped 23.25 cents to $6.5375 per bushel.

Geopolitical Factors Support Wheat

The significant rise in wheat futures was linked to geopolitical developments. According to the report, an attack by Ukraine on a grain terminal at the Russian port of Novorossiysk has heightened market concerns about potential disruptions to global wheat exports from the key Black Sea region, providing upward pressure on prices.