USDA Report Thursday Ouch!

Wednesday morning at 11 the USDA released the October Supply Demand Report. Actually the numbers were a little friendly compared to the average trade guesses. But corn still closed about 8 cents lower! The national average yield was lowered to 173.4 bushels an acre from 174.4 last month. Total production was dropped to 15.093 billion bushels. So why did corn drop 8 cents? Many times United States production might be friendly but the market drops because of the world numbers. In this case, the world carryover was friendly too. World ending stocks were dropped by 2.6 MMT. Maybe the best reason we were lower is because the funds are short and they were selling.

As expected, the USDA raised the national average bean yield to 51.4 bushels an acre  from 50.6. Total crop size is estimated at 4.269 billion bushels. Ending stocks or carryover increased 30 million bushels to 295 million. World ending stocks increased 5.19 MMT, which was a little more than the average trade guess. In the case of beans it seems reasonable that they would trade a little lower on the numbers. I sure hope the great export demand from China continues!