The Agriculture Department released its October supply and demand estimates Friday, calling for tighter U.S. ending stocks of virtually every major grain and oilseed.
And, in a development that ignited a rally in the commodity markets, USDA also released its October crop production estimates.
Prior to USDA's Friday release of the October crop production estimates the market has been volatile to say the least. Official yield estimates were downgraded for both corn and soybeans over September's report.
The corn harvest is now expected to hit a diminished 12.66 billion bushels, down from last month's estimate of a record 13.16 billion bushels. Yield numbers for corn also were reduced drastically to just below 156 bushels per acre -- down from the season opening estimate of 165 bushels per acre and last months nearly 163 bushels per acre.
As corn harvest estimates were curtailed, "guesstimates" for soybean production also were projected lower. Already pegged as a record 3.48 billion bushels in September, USDA pushed the number down two percent in this month's report. Despite the reduction, the new prediction is still a bin-busting record of 3.40 billion bushels. In order for that tally to come to fruition, yields would have to squeak by last year's record of 44 bushels per acre and hit this year's prediction of 44.4 bushels per acre.