The USDA released its October WASDE report last week.
Dan Basse with Ag Resource Company says the surprise of the report was the decline in soybean yields under 50 bushels per acre and a smaller-than-expected drop in corn.
He notes the drop in soybean yield was not expected, and down a little lower than what traders were looking for.
"The USDA also cut combined corn, soybean, and wheat demand by 215 million bushels. Maybe that's the bigger story because, after the USDA report, the market rallied slightly, but has been declining since. I think amid the world that is showing economic headwinds, that indeed the export cut is maybe a trend of the future."
He notes with the drought in the U-S FOB (free on board) costs for US corn, soybeans and wheat have climbed.
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