USDA found larger yields and production in their November Supply and Demand estimate released Tuesday.

Corn yield increased by 1.3 bpa up to 169.3 bpa resulting in production of 13.654 billion bushels.  This increased supply by 99 million bushels from October.  Usage was cut by 100 million bushels as a result of reduced exports and ethanol usage and slightly more feed usage.  Ending stocks increased by 199 million bushels up to 1.76 billion bushels.  The market showed its displeasure with December corn futures making new contract lows.

The soybean balance sheet also showed higher yields.  Soybean yield increased 1.1 bpa up to 48.3 bpa (higher than last year!)  This resulted in production of 3.981 billion bushels, an increase of 93 million bushels.  However, usage also increased by 53 million bushels through a combination of larger crush and exports.  Ending stocks grew by 40 million bushels to a very hefty 465 million bushels.

Read the complete USDA WASDE report here

Graphics courtesy of Advance Trading Inc