U.S. Corn Yield Falls In January WASDE Report

Jan 13, 2021

The USDA released its January WASDE report Tuesday morning.

Dan Basse is president of AgResource Company in Chicago.

"The report came out as bullish. The big shocker was the drop of U.S. corn yield of about 3.8 bushels an acre. That cut 325 million bushels from U.S. corn production, a sizable number looking back to the November estimate and got the corn market rising. We also found that feed residual consumption, that feed usage in the first quarter...was also record large. Not only did we lose a lot of corn, we also found this strong demand component for domestic use."

Basse notes corn futures in Chicago were up 25 cents (daily limit) at mid-day.

Click here to see more...

Video: Did Bears Win Thanksgiving, Will Bulls Get Christmas?

Did the bears win Thanksgiving (although this week had green on the screen), and will the bulls get Christmas? Bears won thanksgiving thanks to a USDA Nov crop report dud that stalled the bullish grain momentum for a brief period. But a bullish lower yield surprise in the Dec crop report could reignite the rally.
2026 U.S. winter wheat planting is nearly complete at 97% while crop conditions improved by 3 points to 48% good-to-excellent. US corn & soybean harvest is complete.
High corn demand, which is off the chart, and more Chinese soybean demand could support a Christmas rally.
Nasdaq had it’s worst November since 2011.
A U.S. Fed rate cut in December will help fund flow and sentiment.
Bitcoin held a long-term support at 80,000 and that's positive for fund flow and sentiment. It should help stock prices and Ag as we go into December.
Fertilizer prices continue to climb as we look ahead to 2026. Farmers may rely more on the nutrients that they already have in their soils.
South American Weather remains critical as the soybean reproductive stage starts from late Nov to late Feb depending on planting date.
Will a Russia-Ukraine peace deal happen by year-end?
CFTC data as of showed more managed money fund sell-off as of October 14th.