The U.S. Department of Agriculture (USDA) released the May edition of its WASDE (World Agricultural Supply and Demand Estimates) report last week. 

While the monthly report from the government is typically a market mover for corn and soybean futures, the May report is exponentially so, as it offers traders the first look at the balance sheets for the new crop year. These numbers are far from final but give the USDA’s best guess at what corn and soy supply and demand might look like for the coming season. 

The May report is also interesting in that there are still notable old-crop changes that can occur via South America, along with the new-crop numbers. This makes the report a bit of a two-part event that, in the days of computer/algorithm trading, leads to increased...