CBOT futures are trading higher following the USDA reports released at noon EST today. The major surprises came with a lowering of average corn and soybean yields, as well as total 2015 production. Compared to the last USDA estimate, corn and soybean production was dropped 51-53 million bushels. Despite this drop in production, the 2015/16 Ending Stocks estimates actually increased for corn, as well as for wheat; only soybeans saw a lower ending stocks forecast.

Today’s Forecast           December Forecast Corn 1.802 billion          1.785 billion 168.4 bu/ac             169.3 bu/ac Bean 440 million          465 million 48.0 bu/ac                  48.3 bu/ac Wheat 941 million            911 million

The December 1st Grain Stocks estimates were in line for corn and soybeans, but the wheat estimate of 1.738 billion was 39 million above the average trade guess. Corn at 11.21 billion is equal to the year-ago estimate. Soybeans at 2.715 billion matched the average trade guess and compares to 2.528 billion a year ago.

Energy futures are down sharply again today as analysts speculate how low it will go – something in the $20s.

Price quotes from about 1:40 pm EST. Corn Mar +6 358 (hi 364); Dec +5 383 (hi 389) Bean Mar +15 876 (hi 881); Nov +14 888 (hi 892) Meal +5 275 Oil +7 2932 Wheat Mar +12 481; Jly +10 491 (hi 494) KC +16 478; MGE +11 504 Oats +6 205 Rice +1 1178

LC Feb -40 13182; Aug +7 12017 FC Jan +105 16050; Aug +47 15875 LH Feb +177 6147; Jun +100 7825 Milk Jan +2 1374; Feb +14 1359

US$ +.2% Dow +14 16412 SP +2 1926 NAS +14 4652 Tran -3 6911 VIX -1.44 22.86

WTI -110 3031 Brent -79 3076 Gas -1 110 NG -13 227 HO -2 99 Eth +1 132 Gold -10 1086 Slvr -9 1377

5-yr -.046 1.532% 10yr -.058 2.100% 30yr -.073 2.884%