In yesterday's Quarterly Inventory and Small Grains Summary Reports, the USDA reduced the size of the 2022 corn crop by 15 million bushels, 4 million more than expected. USDA also reduced the 2022 soybean crop by 5.93 million bushels, about 1 million bushels less than expected.
More importantly, the inventory of corn in the USA on September 1 was less than expected for the third consecutive quarter, this time 68 million less than expected, which is 1½ days’ worth of usage.
Just as importantly, the soybean inventory was 26 million bushels more than expected and just 2 million less than the top end of the range of expectations. That 26 million bu. will add 2½ days of use to the old crop carryover.