The monthly supply and demand forecasts from the U.S. Department of Agriculture were released this week, reports Ag Week.
Weather has been mostly favorable during the last month and expectations were set very high in the August estimates, with corn at 178.4 bushels/acre.
Ahead of the report's release, the market was expecting (and had priced in) a slight decline in corn yield to 177.8 bushels/acre.
Corn yield was actually increased to 181.3 bushels/acre.
Yields were already thought to be a record, but this is well above what most thought possible. Prices fell as a result, and even with lower planted area for the 2018 crop, supplies remain quite comfortable for another year.
