Market Overview
Today was Crop Report Day, and despite USDA finding significantly more planted acres, the overall report landed firmly on the bullish/friendly side of the market.
The biggest surprise came from corn. USDA increased acreage, but a substantial cut to yield combined with stronger demand pushed projected new-crop carryout down to 1.653 billion bushels.
That was enough to send corn sharply higher, while soybeans and wheat also posted solid gains.
🌽 Corn: Yield Cut Changes the Picture
USDA increased corn acreage by roughly 1.4 million acres, but the acreage increase was overshadowed by a sizable reduction in expected yield.
USDA Corn Changes
Yield cut from 183 to 180.7 bushels per acre
Corn acreage increased roughly 1.4 million acres
Old-crop demand increased by another 75 million bushels
New-crop carryout dropped to 1.653 billion bushels
That carryout number is the key.
If USDA lowers yield again in September and pushes the national average below 180
