Grain demand looks healthy after Friday's USDA reports
Generally neutral corn and soybean yield projections took the steam out of Friday's USDA Crop Production report and sent the focus straight to forthcoming yield results and crop demand factors in the U.S. and abroad.
Friday's Crop Production report pegged total U.S. corn production at 13.160 billion bushels with an average yield of 162.5 bushels per acre. Soybean production's seen at 3.483 billion bushels overall, with a yield of 44.7 bushels per acre. The corn yield number's just below what the trade was expecting, while the bean yield is just under a bushel higher than traders anticipated.
So, where's the trade go from here? Analysts said Friday a key thing to watch -- beyond this fall's corn and soybean yields -- is demand, specifically from 2 places: Overseas and domestic livestock feed usage. The former could be a fundamentally bullish force in the coming months, while the latter will remain a big demand driver only if prices don't head too high too soon.