USDA put the corn yield at 171.8 bushels per acre, up from last month’s 169.9. Yet, corn is not falling apart. It is 2 cents higher shortly after the report. Before the report corn was down 3 cents. USDA lowered the soybean yield to 49.5, last month it was 49.9. The corn and wheat ending stocks were higher than expected. Soybean ending stocks were lowered to 430 million bushels, last month it was 475 million bushels. Soybean ending stocks less than expected looks to be the driving force for higher soybean and corn prices shortly after the report.
It is also most surprising to see corn rally with the 171.8 bushel yield. We could see the funds short position in jeopardy with the price action in the first 15 minutes.
Headed into this report this is much fear of seeing a bearish yield report with yields climbing even more than what USDA has estimated for corn and soybeans.… Continue reading