USDA shocked the grain markets with the August Supply and Demand Report row crop numbers. The agency raised soybean yield nearly a bushel per acre from July to 46.9 bushels per acre and increased production to 3.916 billion bushels, even with 800,000 fewer acres. They also raised corn yield 2 bushels to 168.8 bushels per acre, which equates to a 13.68 billion bushel production figure and a 1.77 billion bushel ending stocks total. Jack Scoville with PRICE Futures Group says it was quite a curve ball for the market.

The end result was a bigger soybean ending stocks figure than July at 470 million bushels. Scoville says that number was nearly 165 million bushels above the average trade guess.

He says with the bearish row crop numbers the market could continue to see selling pressure. He pegs the next support areas at $3.50 for December corn and $9.00 for November soybeans.

The wheat ending stocks were fairly neutral at 850 million bushels, just a slight increase from July. However, the new crop global stocks were bearish up 1.67 million metric tons from last month. World corn stocks were also bearish with a 5 million metric ton increase, while soybean carryover globally was down nearly 5 million metric tons from July.