This morning at 8:30 I was talking with Gordy Kralovetz with Chiodo Commodities on the air about this mornings USDA June Supply Demand Report. Gordy said given everything going on in the "real world" he did not see how the USDA could make it a bearish report. But they did! They raised the U.S. wheat yield even though 40 percent of the winter wheat is in poor to very poor condition? Plus, the yield is projected above last year. In addition the South America crop was increased in spite of the weather problems down there.

The USDA did increase U.S. soybean exports by 30 million bushel but, we have already exceeded  the projection for the whole year by 63 million bushel. Remember, the marketing year for corn and soybeans goes through August 31. It likely did not help the grain markets that the DOW was 7 to 800 points lower this morning because the monthly inflation rate was much higher than expected.

The USDA June report was released at 11:00 this morning and normally Gordy and I would have talked about it on the air at 11:15. However, the Randolph Rockets were playing in the State Tournament and the first pitch was at 11:00. So, I called Gordy and recorded Gordy's thoughts about the report and market action. Click on the link above and listen to Gordy's reaction to the USDA Report!.