USDA’s September Supply and Demand Report provided some mixed production and ending stocks figures. Soybean yield was raised to 47.1 bushels per acre which also meant a higher production figure at 3.935 billion bushels. Ending stocks were still lowered from last month to 450 million bushels, but that was above estimates. Brian Basting with Advanced Trading says these figures took the market by surprise.

Basting says a drop in corn yield to 167.4 bushel per acre was seen as bullish by the trade, but it’s unclear if that number will hold during harvest.

That drop in yield did result in a smaller corn crop than last year as well as a tighter ending stocks figure at 1.58 billion bushels.

Basting says the big key for the corn market going forward will be exports. However world ending stocks were dropped by 6 million metric tons, which should help.

Wheat ending stocks were also raised by USDA to 875 million bushel, up 25 million from last month as the U.S. is still not competitive in the world market.

World wheat carryout was also raised in both old and new crop categories at 211.3 mmt and 226.6 mmt respectively.