USDA ripped off the band aid!

Wheat led the way higher with corn and soybeans also posting gains after the USDA release of its May WASDE report. The numbers for wheat projected the lowest HRW wheat crop since 1963 and that had KC and Chicago Wheat finish near limit up on the day. The big surprise was USDA dropping the corn yield to 177.0 bu/acre from trendline of 181. They reasoned that a weather adjustment was in order with current planting delays. We can’t argue with that reason and the fact that the corn market did not go limit up is most of that has already been priced into it. They probably cut usage too much (370 mbu) and we can see a drop off in feed and ethanol next year but exports should be higher. Soybeans were inline mostly but they did bump crush and exports from the outlook numbers. We may see some profit taking today but the market should be well supported. NFC Grain Comments Options -5.13.22 (2)