Market Report: USDA Supply Demand Report Tuesday

Even though it was report day it was quiet in the corn market as corn closed down 1-2 cents a bushel. The report was slightly negative as the USDA did not lower the national average yield as much as traders expected. The USDA estimated the national average yield at 174.4 bushels an acre. Last month the USDA was at 175.1 and the average guess was 172.9 bushels an acre. Almost all the early yield reports are coming in below last year, so it was almost like the trade thinks the national average yield will be lower than 174.4 bushels an acre.

Beans were on the defense after the USDA report when the national average bean yield was increased to 50.6 bushels an acre. By the close, beans were down 13-16 cents a bushel. The average pre-report guess was 49.4 bushels an acre. For old crop beans the USDA cut carryover to 195 million bushels. Remember about a year ago the USDA was projecting carryovers much higher! For new crop the USDA projects carryover at 365 million bushels, about 35 million bushels higher than the August estimate. The USDA has a long history of underestimating bean demand so traders will keep an eye on demand as we go forward.