USDA lowered corn harvest forecast, but by less than traders expected.
Yields are maintained at the June estimate of 166.8 vs. trader expectations (what do they know?) of 165.1. This is despite generally reported poor weather conditions in the US growing areas. The USDA must be thinking the yield is not impacted yet.
US corn production pegged at 13.53 billion bu, down from the June estimate of 13.63 billion.
US corn exports are tracking higher than expected as well, resulting in a lower Aug 31 projected stockpile of 1.779 billion bu, down from 1.876 from the June report.
Soybean output is pegged at 3.885 billion bushels, which is higher than the June estimate and trader estimates. Forecast yield of 46 bu per acre vs trade estimate of 45.1
Based on the fact the markets have remained neutral to positive following the report, traders must be anticipating the continuing wet growing season will be reflected in crop reports coming up? It is hard to say.