USDA’s October Crop Report showed an increased in row crop yields, but production, acreage and ending stocks were all lowered from September. Corn yields was raised .5 bushels per acre, but with 400,000 less acres production was lowered slightly to 13.55 billion bushels and ending stocks lowered to 1.56 billion bushels. Darren Frye of Water Street Solutions says he expects yields to be lowered in the final report though with the late corn in the eastern corn belt a disappointment.

Soybean yields was also raised by .1 bushels per acre, but with a 1.1 million acre decrease in harvested acres the production was lowered to 3.88 billion bushels and ending stocks were down to 425 million bushels. Frye says he thought yield might be much higher.

And he was also surprised by the pullback in harvested soybean acres to 82.4 million acres.

As a result of the price reaction to the numbers and a strong rally coming into the report, he thinks the harvest lows are in for soybeans and corn.

Wheat ending stocks were lowered domestically to 861 million bushels, from the 875 million in September, but world stocks were raised. Frye says however, the market continues to indicate it may have put in a bottom as well.

World ending stocks for wheat were raised nearly 2 million metric tons and are not reflecting the global weather concerns in Australia, Russia and Ukraine.