Corn futures climbed to around $4.40 per bushel, approaching a one-month high, after the USDA cut U.S. corn ending stocks more than markets had anticipated in its July WASDE report, pointing to a tighter supply outlook. The agency reduced 2026/27 ending stocks by 170 million bushels to 1.8 billion, as stronger export demand more than offset a modest increase in production, while leaving the national yield projection unchanged at 183 bushels per acre.
The USDA also kept its forecast for corn used in ethanol production at 5.6 billion bushels for 2026/27, highlighting steady demand from the biofuel sector. At the same time, traders are closely tracking weather conditions across key U.S. growing regions, with localized heat and uneven rainfall expected to shape yield prospects during the critical pollination period.
Globally, persistent heat and drought are further eroding yield potential in France, where the USDA now expects the smallest corn harvest in more than three decades, intensifying concerns about global supply tightness.
