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| Overall USDA report was bearish as expected. Almost everyone was expecting a bearish report and that is exactly what we got.
Despite the awful report, the price action wasn’t all that bad. We had an impressive bounce across the board.
Corn had the most bearish report, yet closed +6 cents off it's lows and down over a dime on the day.
Soybeans were down over a massive -30 cents following the report, but rallied +20 cents off their lows to close down just -12 cents.
The wheat market also rallied a dime off their lows, down almost -8 cents on the day.
These two charts from Karen Braun is how today's report shaped up with previous years.
For corn, this was the worst performance for the January report in 12 years, since 2012.
For beans, this was the first time in 9 years that beans traded lower on this report.
Now let's take a look at the report numbers.
First we had the USDA raise US production and yield. This was the biggest surprise as nobody saw this one coming, but yesterday we pointed out that this was a very real possibility of happening because the USDA does things no one expects.
They raised corn yield from 174.9 to a whopping 177.3 which is a record yield. This was 1 bushel higher than the highest pre-report estimate.
They also raised beans from 49.9 to 50.6. This was still below trend line and far from the record of 51.9.
Yes this big of a jump especially in corn yield shocked the market, but we mentioned yesterday this was a potential risk not many were talking about.
Todays corn yield was the biggest shock to the upside on January yield since 2009….
Read today’s full USDA report breakdown where we go over all of the numbers and what this report means
Read Here: https://txt.so/kxu3zM
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Market Comments - USDA Breakdown
