The USDA supply/demand report surprised the grain markets with significantly higher corn acreage and yield estimates, pushing projected ending stocks to over 2.1 billion bushels. Kristi Van Ahn, COO of Van Ahn and Company, called the report “ridiculous” and said it frustrated many in the industry. “Corn acreage went from 95.2 to 97.3 (million), and then they went from a yield of 181 (bushels per acre), which is a record, to 188.5 (bushels per acre).” This added nearly a billion more bushels to the supply, creating bearish pressure. On the soybean side, acreage was lowered while yield was raised slightly, resulting in a carryout near 290 million bushels.
