The USDA Report released Friday morning at 11 did not have numbers far from the average trade guess, but corn closed 12-13 cents higher. September was up 25 cents on the week. The USDA lowered its corn yield estimate to 167.5 bushels an acre. Last month's estimated yield was about 168.9 bushels an acre. Global ending stocks for the 2014-15 and 2015-16 season were only slightly lower too. The corn market was very oversold and I suspect the biggest corn yield estimate of the year is behind us. Hopefully we can build on Friday's rally Monday. I suspect we can unless the outside macroeconomics in China and United States hit us again.

It was a wild day for beans after the USDA Report Friday morning. Shortly after the report, beans were down 18-20 cents a bushel. It was quite a victory for beans to close 3 cents higher in old crop and up to down a fraction in new crop. The USDA actually raised production this year to 3.935 billion bushels, with a yield of 47.1 bushels an acre. Almost everyone expected the USDA to lower the yield rather the raise it a fraction of a bushel. Beans were very oversold, too, and with a negative report still closed slightly higher. It brings to mind an old saying in the grain trade. Maybe the bear market is over when bearish news does not make the market go lower.

 

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