Balance Sheet Updates Shock U.S. Markets

The U.S. Department of Agriculture (USDA) left the U.S. corn yield projection unchanged at 177 bushels per acre in this month's World Agricultural Supply and Demand Estimates, but increased total output to 14.5 billion bushels on higher acres from the June acreage report.

Corn carryout for the 2021-22 crop year increased to 1.51 billion bushels, a 25 million bushel bump from June on reduced feed and residual usage. This carried over into the 2022-23 balance sheets and, when combined with a larger crop, is expected to result in a 1.47 billion bushel carryout.

These volumes were all above the average trade guesses.

The U.S. soybean yield was left unchanged this month at 51.5 bushels per acre, but crop size was reduced to 4.5 billion bushels from last month’s 4.64 billion bushels due to the 2.6 million ...