June USDA Supply & Demand

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The USDA surprised traders with smaller production numbers than were expected. Traders immediately bid crop prices up from the lower levels seen all day. Beans and KC wheat have not been able to hold the gains however.

The biggest surprise came from the smaller than expected corn yield estimate of 166 bushels per acre. The average trade guess was 171.7 because few expected the USDA to change its yield estimate so much on this particular report.   World corn carryout was also reduced sharply.

Bean and wheat yield estimates were nearly unchanged.

Old crop corn carryout was increased by 100 million bushels but new crop was cut to 1.675 from 2.485 last month due to the smaller corn crop. Bean carryout was increased for both crop years.

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These data and comments are provided for information purposes only and are not intended to be used for specific trading strategies. This commentary is written as a daily marketing tool to help farmers sell the grain they raise. Although all information is believed to be reliable, we cannot guarantee its accuracy or completeness. Past performance and testimonials are not necessarily indicative of future results. Commodity trading involves the risk of loss, and you should fully understand those risks before trading.