Typically the February USDA Supply Demand report is a nonevent, and that was pretty much true again this year. Corn carryover was cut 35 million bushels to 2.320 billion bushels. Ethanol usage increased 25 million bushels to 5.35.billion bushels of corn. The world carryover was a little friendly with corn carryover dropping from 220.98 MMT to 217.56 MMT. The national average cash corn price was increased a dime to $3.60 a bushel. I always keep an eye on the USDA projections for average cash prices from month to month. If it is increasing, that tells me the USDA is not as bearish and future reports might be friendly too.

The USDA did not change the bean carryover in Thursday's report. It was left unchanged at 420 million bushels. Like corn, the bean world carryover numbers were a little friendly too. World carryover was dropped from 82.32 MMT to 80.38 MMT. The USDA national average cash price was dropped a dime a bushel to $9.90 a bushel. So, we got through this report without much damage to prices. However, later this month we see the USDA Outlook Forum projections. Remember, They are always very bearish with huge corn and bean projected carryovers.

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