The spread between new crop corn and soybeans continued to widen following today's USDA numbers. At the moment we see DEC '13 corn down 14 cents and NOV '13 soybeans up 3.
As expected, yield numbers were the major talking point following the report with the USDA actually raising corn yield by almost a bushel per acre to 155.3 BPA. This compares to market expectations which had the USDA lowering yield by nearly a bushel per acre. This carried into production with now is estimated at 13.843 billion bushels, up 8 million bushels from the August report. Ending stocks for 13/14 US corn are now projected at 1.855 billion bushels, up 123 million from the August report.
Soybeans remain a different story, with the USDA report coming out inline with trade expectations. Harvested acreage was left unchanged at 76.4 million acres, yield was lowered 1.4 bushels per acre to 41.2 BPA. This resulted in a production number of 3.149 billion bushels, which was on par with trade expectations. US 13/14 soybean ending stocks were lowered by 70 million bushels now sitting at 150 million bushels. This was the only bullish number from the soybean balance sheet, with the trade looking for an ending stock number 15 million bushels higher than reported.
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Below is audio commentary from right after the report release. Join us on GrainTV this afternoon for a complete breakdown of WASDE numbers and what that means for price moving forward.