What can you say about the USDA Supply Demand and WASE Report this morning. Traders were expecting the U.S. bean carryover to be cut to 123 million bushel and the USDA actually cut it to 120 million. Last month the USDA estimate was a carryover of 140 million bushel. That is getting down to "pipeline" supplies so that likely explains why beans are around unchanged at this point.

Corn was a different story as traders expected the USDA to cut corn carryover down to about 1.3 billion bushel. The USDA only dropped corn carryover 50 million bushel to 1.5 billion bushel. March corn had just set another new contract high as the report was released and 8 minutes later corn  was trading 20 cents lower from the contract high. It is hard to understand that 200 million bushel could take corn down 20 cents off the highs!

When you consider a U.S. corn crop of over 14 billion bushel 200 million bushel is nothing more than a "rounding" error. Remember too, the USDA is predicting that 1.5 billion bushel corn carryover at the end of the marketing year which is August 31. 2021. That is a long time till then and a lot can happen with the South American second crop of corn and all of the U.S. growing season ahead! Click on the link and listen to Gordy discuss the USDA Report that was released at 11:00 this morning.