In a surprise to many, the USDA increased the size of the US corn and soybean crop. The USDA found more acreage this month, raising corn harvested acreage by 1.4 million acres and soybeans by 200k acres. Prices of corn and soybeans initially dropped lower following the report but were trading back in the green within ten minutes, signaling traders may not agree with the USDA numbers.
Prices continue to chop back and forth. Expect more of the same as harvest season ramps up around the US Belt.
The USDA left US wheat supplies and domestic use changed, while they increased exports. This led to a 25 million bushel reduction to ending stocks.
Source: USDA, Reuters