August USDA S/D Report Summary
Wednesday, August 12, 2015, 1:08 PM
Submitted by: Eric Kist
One glance at the futures board at you can tell it was a dismal day for grains, as corn dropped 19 cents, and beans fell off the table, losing more than 60 cents on the day. The USDA’s August Supply & Demand Report came in as a big surprise to traders, mainly due to increases in both corn and soybean yield projections for the upcoming year. The general consensus leading up to the report was that yield numbers would actually decline, so when the adverse was reported the markets reacted quite violently.
Overall, estimated production for the upcoming year for both corn and beans was raised. Corn production estimates increased by 156 million bushels, which raised the estimated new crop carryout number. Soybean production estimates increased by 31 million bushels, as the increase in yield was only partially offset by a reduction in harvested acres. New crop carryout estimates are now calling for 470 million bushels in ending stocks for the 15/16 bean crop.