Highlights
The US inventories of corn, wheat and beans were all significantly less than expected. That is not only friendly for each of those commodities, but all three being significantly less than expected adds an additional element of bullishness for the group.
USDA surprise #1: A 1.6 million acre cut of harvested US 2022 corn acres and a 300,000 acre cut in harvested bean acres.
Surprise #2: Corn yields were increased almost a full bushel per acre while bean yields were reduced six-tenths of a bushel. That is a big yield swing and for it to be in opposite directions is very unusual. The bullish corn numbers add more evidence that the USDA did overstate the 2019 corn crop by more than a billion bushels. USDA has been playing catch-up ever since.