U.S. Corn Futures Recover After USDA Raises Production Forecast

U.S. corn futures edged higher Monday after the U.S. Department of Agriculture (USDA) forecast higher production and yields, reversing part of Friday’s sharp decline.

The forecasts surprised a market in which most analysts had expected the USDA to reduce its estimates. The agency’s outlook triggered heavy liquidation and an initial steep drop in corn futures.

Prices later recovered some of those losses, leaving futures modestly higher during Monday trading. The move followed the market’s reaction to the USDA’s Friday forecast.