The long-awaited January supply and demand figures were more friendly for corn than expected.
The U.S. corn yield was lowered 3.8 bushels per acre to an average of 172 bushels per acre. This lowered the U.S. crop size by 324 million bushels for a production estimate of 14.18 billion bushels.
The USDA also reduced last year’s carryout by 76 million bushels. Total corn demand was lowered 250 million bushels, with reductions coming to feed, ethanol and exports.
This is enough to put ending stocks at 1.55 billion bushels, down from last month's 1.7 billion bushel estimate.
Soybean balance sheets also tightened this month. The U.S. yield was lowered 0.5 bushel per acre to an average of 50.2 bushels per acre.
This was enough to lower U.S. production to 4.135 billion bushels, down 35 million bushels from December.
On the demand side, the USDA increased soybean crush by 5 million bushels and exports by 30 million bushels but decreased residual usage by 13 million bushels. A 20...