A fresh WASDE report is driving market moves in the major grains as the already large corn and soybean crops continues to grow.
In the USDA’s crop production report released Wednesday, the corn yield has increased nearly two bushels per acre higher than the October estimate. It’s now pegged at 175.3 bushels an acre, 0.2 bushels different than the August report forecasting a record crop. Production is at 15.2 billion bushels, 1 percent higher than October.
The soybean crop was also increased by the USDA. Yield estimates are now 52.5 bushels per acre, more than a bushel higher than the October report. Production sits at 4.3 billion bushels, an increase of 2 percent in comparison to October.
With the increased production in both corn and soybeans, grain stocks are higher. The total U.S. ending stocks for corn were set at 2.4 billion bushels, an increase of 83 million bushels from the October report.
Domestic soybean ending stocks were increased from 395 bushels to 480 million bushels.
“[Production] came in well above what the trade anticipated and that pushed 2016-17 corn carry over up more than anticipated,” said Brian Grete of ProFarmer. “Now the market is dealing with more supply than what it anticipated at this point in time.”