U.S. corn futures rebound after 4% Friday plunge

what happened

U.S. corn futures edged higher Monday, recovering part of the previous session’s steep decline. Seeking Alpha reported that Friday’s selloff followed an unexpected U.S. Department of Agriculture forecast for larger corn production and yields, while most analysts had expected a reduction.

The USDA’s WASDE report lifted its 2026-27 U.S. corn production estimate by 234M bushels to 16B bushels, 1% above the previous month. The agency also raised its national average yield forecast by 2.7B bushels per acre to 181.2B, above the 177.8 bushels per acre expected by analysts. Brian Grete of Commstock Investments said the sharp increase in the yield estimate caught the market off guard and prompted heavy liquidation.

CBOT corn for December delivery rose 0.8% Monday to $4.83 1/2 per bushel after plunging 4% Friday. December wheat added 0.3% to $6.72 3/4 per bushel, while November soybeans fell 0.3% to $12.88 1/4 per bushel. Wheat also drew support from concerns about global supply chains after Russia continued striking Ukraine’s energy infrastructure.

why it matters

The USDA revision increased pressure on corn, while Monday’s rebound reflected a partial reversal of the post-WASDE selloff. Wheat continued to carry an additional supply-chain risk tied to the attacks on Ukraine’s energy infrastructure.

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