Grain and soybean futures consolidated overnight and again pushed higher this morning.

The grain trade is mostly higher across the board this morning, with Chicago wheat playing catch-up on the wheat spread. Yesterday’s strong gains in wheat and soybeans were consolidated overnight, and further strength is developing today. This is frustrating the bears who thought they would own this week, as the Farm Ag Outlook forum, put on by the USDA, is usually full of price-negative surprises. This morning we are seeing new price highs for the week on soybeans and again wheat. Even a friendly 94 million-acre revelation with a 183 BPA that would lower the carryout this year didn’t make the corn market flinch yesterday, but this morning, we are seeing minor strength. Now we will see if the sunrise selling vigilantes will arrive too pushback on overnight gains.

Yesterday’s revelation that corn acreage would be down nearly 5 million from last year and a million below trade estimates is creating a buzz. What stood out was the total corn production, which came in at 15.76 Bil Bu. This was 600 Mil Bu below this year’s projected corn demand. If accurate, either corn rationing will need to take place, or the stocks to use may tighten to a rationing level.