The July WASDE report's potential outcome

The latest World Agricultural Supply and Demand Estimates report was released on August 12, and it was a market mover. Crossroads CO-Op Regional Manager, Brian Irey, on the potential outcomes of the latest WASDA release.

"I think the big question prior to the report was, is whether the USDA would acknowledge the size of the corn and soybean crops in terms of yield, especially the corn crop. And I think the breaking point on corn yield was 185. I think the trade belt would have been neutral. Anything over that bearish, and we just blew the top off of the 185 with a record potential yield here and just a massive, massive corn crop, a record by far at 16.74 2 billion bushels."

Irey says the report was not favorable for producers, but end users, particularly on the feed grain side, may benefit, especially from the acreage figures.

"The big issue, I think that maybe caught us a little bit off guard too, was adding 2.1 billion bushels of corn acres that maybe flew under the radar, but that is where a big part of that 16.74 2 billion bushels of production came from, and they came about higher corn acres by reducing soybean acres."

Brian Irey with Crossroads CO-Op.