On February 8th the USDA released the much anticipated WASDE report after missing the January report due to the government shutdown. The USDA pegged the final 2018 corn yield at 176.4, down 2.5 bushels per acre. The market did not react overly bullish however as this decrease in production was offset with decreases in feed use and ethanol demand, leading to an overall cut in carryout of 46 million bushels to 1.735 billion bushels. Argentina corn production was increased in the report, up 3.5MMT from the December to 46MMT. Brazil production was unchanged; year over year Brazil and Argentina production are up 26.5MMT combined.
The USDA cut bean yield slightly by 0.5 bushels to 51.6 bushels per acre. Demand was almost a wash with a 25 million bushels cut in exports, but a 10 million bushel increase in crush. Overall US soybean carryout fell by 45 million bushels to 910 million bushels. We saw a big cut in Brazil bean production, down 4.9MMT to 117.09. Argentina had a small cut of 0.5MMT, combined Brazil and Argentina production was cut 5.41 MMT from December but it is still up 13.99MMT from last year.View News