Report Reaction, Early Call

The much-awaited USDA report threw up a few surprises today. US corn production was actually raised despite almost universal anticipation of a drop due to the volume of corn left standing in the fields.

US soybean output was also increased, this time as was expected, with a further 2 MMT added to the Brazilian crop estimate, now forecast at a record 65 MMT, although this only brings the USDA into line with the likes of Conab.

Ending stocks for corn, beans and wheat all came in higher than anticipated. Global wheat ending stocks were also raised.

The only bullish surprise was US winter wheat sowings down more than 14% to 37.1 million acres, over 6 million down on last year and almost 3 million below what was expected.

Wheat will still have a hard job swimming against a bearish corn and bean tide this afternoon.

Early calls: corn down 15-20, beans down 20-25, wheat steady.