Bullish response to USDA report

The grain markets had a bullish reaction to Thursday’s Jan. 12 USDA report, leading to higher prices.

Coming into the report, most were expecting more bearish information but that wasn’t the case.

Corn carryout was 1.242 billion and the average trade guess was 1.31. Corn production was 200 million bushels light and yield was higher than expected, ending up at 173.3 bushels per acre.

Soybean carryout was expecting 235 million bushels but ended up at 210 million bushels, which was lighter than expected. Yield on beans decreased slightly from 50.2 to 49.5. Soybean production came in lower than expected.

Quarterly grain stocks for corn came in lower than anticipated and soybeans were slightly higher.

The wheat number was a bit better than expected.