Yesterday’s WASDE report was extremely bearish for corn, with USDA increasing yield by 3.6 bushels per acre (bpa). This number beat the highest of analyst expectations by 1.4 bpa, a good indicator of how big the surprise was. The market’s reaction seems too mild for such bearish news, with corn futures yesterday closing only about 6 cents down and opening higher on Friday. If that report could not crash the market, it is hard to imagine what could. An almost-record short fund position might have tempered the move; however, it also becomes a potential bullish variable as any bad news could scare the funds out of their position.
U.S. corn yield
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