%Corn prices are marching higher on news of lower-than-expected production forecasts.
The price of corn on the Chicago Mercantile Exchange is currently at $3.70 U.S. per bushel, its highest level in a month.
The bump in price comes as demand for U.S. corn exports rises, with the U.S. Department of Agriculture (USDA) reporting net new sales of 2.8 million tons for the week ended Aug. 14.
At the same time, U.S. corn yields are estimated at 182.7 bushels per acre.
While the latest estimate of corn yields is a record, it is significantly lower than the USDA’s previous estimate of 188.8 bushels per acre, resulting in expectations for lower production.
Commodities analysts say dry weather and crop disease this summer have led to lower corn production in the U.S. Midwest, which has lifted prices higher.
At the same time, global demand for corn remains near historic highs as countries such as China and parts of Europe import more of the commodity staple.
