USDA Slashes Corn Yield 4.9 Bushel an Acre [Listen]

This morning at 11:00 the USDA released the August Supply Demand Report. Traders anticipated the USDA would drop the National Average corn yield by about 2 bushel an acre and soybeans around one half a bushel. Well, the USDA slashed the corn yield by 4.9 bushel an acre and beans .8 bushel an acre. This morning when the markets opened corn was trading a couple cents lower. Just after the report was released corn was up over 35 cents a bushel and beans were up about 15 cents a bushel!

Yesterday Gordy with Chiodo Commodities said he thought the USDA would cut the yield on both corn and beans but then would cut the demand too with lower exports. Well, that is exactly what the USDA did or the market reaction would likely have been even higher prices! Looking at the U.S. drought monitor, weather problems in South America and other Countries around the world you would think the USDA will be forced to drop yields and production in future Supply Demand Reports?