I guess the old phrase in the grain markets applies to today's USDA August Supply Demand Report, 'big crops get bigger." The USDA sees this years corn and soybean crop even bigger that the average trade guess. The corn yield was raised to 181.3 bushel an acre for a national average yield and soybeans at 51.2 bushel an acre. If the projected corn and soybean yields are that high they would be all time record yields by a lot!

While the projected corn and soybean production this year was bearish the ending stocks for both corn and beans came in below or about at the average trade guess. Plus, the world ending stocks for corn and beans were about in line with the average trade guess. The market reaction was a little lower and than moved a little higher. Here is another old phrase, "maybe the bear market is over when bearish news does not make the market move lower." Click on the link and listen to Gordy's comments about the August USDA Supply Demand Report.