Grain Shipping TradeMany producers consider the $4 per bushel a significant price threshold. For the first time since November 2020, the December corn futures contract fell below $4 on July 31. However, producers face production costs that have risen 29% during this time.

Export sales are up 37% from last year, and the USDA estimates that shipments will reach 2.225 billion bushels. The price of U.S. corn remains competitive with corn exports from other countries. The USDA estimate of a 15.1-billion-bushel corn crop translates to a 2 billion-bushel surplus.

DTN Lead Analyst Todd Hultman explained that severe weather in many parts of the country has probably yet to be factored in. The USDA’s August report will likely reflect the impacts of the derecho, heavy rains and hail damage across the Corn Belt.

Read more about the historic corn future prices here.