Corn jumps 4.6% as US cuts yield forecast on heat waves

The Story in Brief

Corn futures jumped as much as 4.6% in Chicago, the biggest single-day gain since June, after the US Department of Agriculture cut its corn yield forecast to 180.7 bushels per acre, down from 183 last month and sharply below last year’s record of 186.5. The reduction, blamed on heat waves across the Northern Hemisphere, exceeded market expectations. The USDA also lowered its wheat export outlook for Russia and Ukraine following an attack on a key Russian grain port. Despite the yield cut, total US corn production is estimated to rise slightly to 16.013 billion bushels, the second-largest harvest ever. The agency also raised its acreage forecast for corn.