The USDA's November World Agricultural Supply Demand Estimates report saw an unexpected change.
Dan Basse with Ag Resource Company says the surprise in the report was an increase in yield for US Corn and Soybeans:
"That extra supply ended up coming through in both end-use stocks and U.S. soybean. End-use stocks were up 10 per cent or 20 million bushels to 220 million bushels. The corn was still relatively tight, it was a little under 1.3 billion bushels."
Basse says they believe the larger crop is likely due to the favorable harvest weather for much of September and October.
Basse says it was a surprise to see the yield increases because any increases tend to be carried over to the final report in December.
He notes as we look at prices the markets are still very geopolitically focused.
"There's lots of discussion about whether the export corridor in Ukraine will stay open or closed. We hear from our friends in the UN that they're making progress and we're hopeful that it stays open. That means additional export competition for both Canadian and US farmers. So we'll see how that all plays out. But in a general sense, it's expected that world grain prices will probably trickle lower, assuming we have normal South American weather and no real flare-ups in the Black Sea over the next six to eight weeks."
You can hear more about what's influencing the markets in Glenda-Lee's conversation with the President of Ag Resource Company, Dan Basse by clicking the link below.