USDA Report - Corn

This is where the biggest shock came from, the USDA increasing US production to 13.151 billion bushels, above even the highest trade estimate and 230 million up on last month, when almost everyone had been anticipating a reduction.

Yields were the culprit, coming in at 165.2 bu/acre, from 162.9 bu/acre last month and 0.7 bu/acre above the highest trade estimate.

US carryover was raised to 1.764 billion bushels, well above estimates for 1.613 billion.

The increased US production and an extra 1 MMT of output from Argentina will help push global carryover up from 132.3 MMT estimated last month to 136.2 MMT now, the USDA said.