As expected, the USDA increased the U.S. corn yield and crop size last week in the August crop production report. The U.S. corn yield is now pegged at 181.8 bushels per acre, a full 3.3 bushels larger than the July estimate. This is expected to give the U.S. a 15.278 billion bushel crop, 278 million bushels more than earlier thought. 

The USDA did increase feed and residual usage on corn by 75 million bushels and made the same increase to exports in its monthly supply and demand estimates. This...