The USDA released its August WASDE report on Thursday.
Dan Basse is president of AgResource Company in Chicago.
"The report was generally bullish," he said. "Big cuts in world wheat production, including Canada down to 24 million tons. Russia at 72.5 million. Then we had a smaller than expected U.S. corn yield, 174.6 bushels per acre along with a soybean yield of 50.0 bushels per acre. Everything that came on the low end of trade expectations in the markets rallied accordingly...As you stand back from it, the demand from Canada for feed and the Brazilian corn crop at 87 million tons, is likely to get smaller. We've still got a bullish cadence going forward. It's just now about deciding whether those U.S. soybean and corn yields can be verified by either the combine or by producer checks."
Basse says the Dakotas and Minnesota are dealing with drought issues, resulting in big yield drops from last year.
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