Friday’s WASDE report was undoubtedly bearish, led by the unexpected hike in soybean ending stocks. Ahead of the report, analysts were projecting 2018/19 soybean yield to increase, with the average of expectations being around 49.8 bushels per acre (bpa). USDA’s much stronger increase to 51.6 bpa came as a surprise and took ending stocks to a record 785 million bushels. The soybean market’s bearish sentiment spilled over to corn, which seemed to have more neutral changes to its 2018/19 balance sheet.
USDA increased corn yield to 178.4 bpa, an expected but still sharp move. Analysts had been speculating that yield might be as high as 180 bpa.
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