Early Call/First Reactions Post USDA

Whilst yield cuts were expected, the USDA report looks bullish soybeans and corn with both production estmates coming in lower than the average trade expectation.

The wheat numbers were neutral to bearish but wheat will likely derive some benefit from spillover strength in beans and corn.

Early calls are 20-25c up on beans, 5c up on corn and flat to 2c firmer on wheat.

Session highs may be put in early here, at the end of the day the US production numbers were a bit bullish for soy & corn, but increases elsewhere are also significant.

Overall the wheat figures were bearish in my opinion. Despite a widely anticipated cut in Australian production of 3MMT world production was increased and ending stocks were pegged higher too.