U.S. Crop Failures Push Corn Futures Above $5 Bushel

Severe weather across the U.S. Midwest has significantly reduced corn and soybean yields, with heavy flooding in Indiana and Ohio and record tornadoes in Illinois. These domestic losses, coupled with the smallest corn harvest in 19 years in Europe and wheat disruptions in the Black Sea, have pushed Chicago corn futures above $5 a bushel for the first time since early 2025.

The United States Department of Agriculture reported a sale of 712,000 tons of soybeans to China, marking the largest daily amount this year. This surge in demand follows a commitment by the Government of China to purchase 25 million tons of soybeans annually and $17 billion in other agricultural goods.

The supply tightening occurs ahead of a scheduled September meeting between President Donald Trump and President Xi Jinping to discuss trade and exports. While tractor manufacturer John Deere reported stabilizing market conditions, the company expects a more pronounced recovery by 2027.