USDA delivers some more bearish surprises

The USDA published another bearish report on Tuesday, boosting corn and soybean yields when the market was expecting numbers to be lower than in August.

For corn, the department projected an average yield of 169.9 bushels per acre, up from 169.5 in August and almost two bushels above the average analyst’ estimate of 168.

For soybeans, the USDA pegged the average yield at 49.9 bushels per acre, up from 49.4 in August and also above the average trade estimate at 48.8.

And with bigger production came larger ending stock estimates…

U.S. corn ending stocks were pegged at 2.335 billion bushels, up from 2.27 billion in August and an average trade estimate of 2.18 billion.

For beans, ending stocks were unchanged from August at 475 million bushels, compared with the average trade guess of 442 million.

U.S. wheat ending stocks were also unchanged from August, at 933 million bushels, versus the average analyst’ estimate of 920 million.

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Matthew Pot, author of Grain Perspectives, joined Shaun during RealAg Radio at the Outdoor Farm Show in Woodstock, Ontario to discuss the USDA’s numbers. Listen here:

Some more post-USDA tweets:

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