What does the WASDE aftermath have for us?
Corn and soybeans rallied out of the 11:00 WASDE print yesterday due to not only lower than expected carryouts but lower than last WASDE carryouts. Corn surprised with USDA dropping harvested acres by 1.6 million acres. These acres were chopped in KS, NE & SD. The USDA seems late to the party on this data point. The FSA should have had this data months ago. The soybean balance sheet shrank on a cut to yield by 0.7 bushels & the harvested acres by 300k. These production cuts outweighed the trimming on the usage side for both corn and soybeans. Now we will have to see some follow-through or is the market looking for demand to keep pulling back in future reports. For today, we will watch the overnight highs of 6.75 & 15.28 for resistance and 6.58 and 15.05 for support.