USDA Report Today

This morning at 11 the USDA released the December Supply Demand Report and there were no big surprises. Corn carryover in the U.S. was raised from 1.76 billion bushels to 1.785 billion. That's not much more than a rounding error. Corn used for ethanol was raised by 25 million bushels. Remember in the November Report corn used for ethanol was cut as the USDA assumed more sorghum would be used instead. This month it was reversed. Global corn production was lowered by 1 million tons so there were no real changes there either.

There was nothing real exciting on the bean side either. Ending stocks or carryover in the U.S. was left unchanged at 465 million bushels. World oilseed production was cut by 2 million tons to 529 million tons so there was nothing exciting there either. Where do we go from here? The bright side is at least the December USDA Report did not take the markets lower. I suspect we are left with hoping demand increases and the weather continues less then perfect in South America!