Highlights
The market reaction to the USDA numbers was bullish for corn and beans. Corn should have been stronger than it was given as the 2024 corn yield was reduced 3.8 bushels per acre.
The USDA pretty much admitted they do not know what they are doing or that they had been lying to us about the corn and soybean inventory.
USDA added 200,000 acres of corn harvested, but cut the yield by a whopping 3.8 bushels to 179.3. The lowest trade yield guess was 181.3.
The big yield cut drop production by 276 million bushels. As usual, to keep the price of corn under control, the USDA reduced corn for feed use by 50 million bushels. USDA also reduced exports by 25 million bushels, which corn exports will increase. Only Uncle Sam has corn for sale for the next two to three months and yesterday’s USDA numbers told the world that corn supplies are tight!