Corn and soybeans were both trading lower shortly after the release of USDA’s October WASDE report late Tuesday morning.
John Heinberg is a market advisor with Total Farm Marketing. Minutes after the WASDE report came out, he joined our network to break down what was released by USDA.
“We actually got a bit of a bearish (soybean) number compared to expectations,” said Heinberg. “USDA moved soybean yield to 51.5 bushels per acre. That’s basically up nine-tenths of a bushel off the September numbers. Market was expecting a 51.1 or somewhere in that window. With that, that’s going to move carry over up to 320 million bushels. That’s significantly higher than the 185 that we were at here last month.”
Heinberg takes a look at the corn and wheat numbers from Tuesday’s report.
“Corn side of the equation, pretty much in line,” said Heinberg. “We did see carry over go to 1.5 billion bushels. That was up more than we anticipated there. Yield went up two-tenths of a bushel to 176.5 versus 176.3 from back on the last report. The biggest thing we have to watch here is what is going on with that wheat market. That market got a friendly number today. Total wheat crop was at 1.64 billion bushels. That’s down about 50 million bushels from September.”
Heinberg added that both corn and soybean acreage remained unchanged from September in Tuesday’s USDA report. The full report can be viewed here.