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No big surprises in USDA’s supply-demand report

There were no major surprises in Friday’s supply and demand estimates.

Allendale analyst Rich Nelson says the USDA took a “half-step approach” to needed changes on the balance sheet for soybeans.

“They did recognize some old crop supply issues. Certainly raising the Brazil crop to 114 million tons was deemed as a little negative,” Nelson says. “But they saved any further changes on the soybean balance sheet for possibly another couple months.”

Nelson says there were no changes to speak of on the corn side.

“So for the most part, this was deemed as more of a neutral report by the trade,” he says. “Certainly weather will be getting a lot of the focus here in coming days.”

There was a bit of a surprise in the wheat numbers, with a slight increase in winter wheat production to 1.25 billion bushels. The wheat yield projection for Kansas was also raised by two bushels, to 44 bushels per acre.

AUDIO: Rich Nelson

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