With most traders looking for corn yields in the 158-159 area, USDA surprised the trade by slashing them to 155.8. The crop is down, as expected, at 12.7 billion. Carrying in the disputed 1.7-billion stocks number from last week’s report and given usage estimates, USDA’s carryout for the 2010 crop fell under the magic billion-bushel mark to just 902 million bushels.
“Clearly, this changes things for corn appreciably and sets up an acreage battle for spring,” says Jerry Gulke of the Gulke Group.
We’ll carry his full audio commentary later this morning.