USDA’s May Supply and Demand Report drew a sharp reaction from the grains markets, with wheat contracts shooting as high as 45 cents higher in the morning session. Total Farm Marketing Market Analyst Naomi Blohm says wheat even pulled the corn and beans higher following the release of the report. “The report was totally neutral for corn and soybeans, and had it not been for the friendliness of wheat, I honestly think corn and soybeans would be trading negative right now.” Wheat was the big story of the report. “The USDA for the new crop wheat came in at 1.561 billion bushels. That’s down from 1.9 a year ago. This would be the lowest production since 1972. Due to lower acres and lower yield, that winter wheat crop just zapped, and so that’s why the production number was so low.”
