A highly anticipated World Agriculture Supply and Demand Estimates report is out.
Corn ending stocks in 2017 is higher than the trade expectation of 2.43 billion bushels, the USDA says it is 2.477 billion bushels. That's about 180 million bushels more than last year. With that, is an increase in yields to a record 176.6 bushels per acre, partially offset by a 400,000 acre reduction for harvest.
Soybean ending stocks in 2017 is lower than the trade expectation of 472 million bushels, at 470 million bushels. Partially because yields have gone down for beans, the estimate is 49.1 bushels an acre.
Projected wheat ending stocks in 2017 are up a bit at 989 million bushels, the average trade expectation was 959 million bushels.
Market Analyst Alan Brugler with Brugler Marketing and Management says, "There were a few surprises in there. The USDA raised the corn yield to over 176, they dropped the bean yield four-tenths of a bushel. So the trade had been comfortable with the existing numbers. So we're getting a little adjustment there. There were a few surprises on the winter wheat acres. It's down slightly from a year ago but much larger than the trade had expected. And that's hitting the wheat market pretty hard."
Brugler adds the wheat surprise is dragging down the corn markets.