Surprise cut to soybean yields

Corn and soybean futures finished higher after the latest USDA WASDE release. Soybeans were the big winner with a surprise yield cut of .3 bushels per acre and that took the sting out of the 40 million bushel drop in export demand. Corn yield was bumped to a record 177 bushels per acre and that was countered by a 50 million bushel bump in ethanol usage. The corn numbers were not a surprise to anyone but the soybean production drop was. The question moving forward to January will the soybean crop continue to shrink as exports will likely continue to get trimmed and keep the carryout from growing? Will be watching to see if yesterday’s gains will hold and possibly grow today. NFC Grain Comments 11.10.21