The WASDE report was considered underwhelming by the majority of the trade. The lack of expected adjustments rippled through the market as negativity and resulted in sharp falls in both wheat and corn futures. Soybeans saw a little upside from both spread trade to the more bearish corn and wheat pit but also from some weather scares in the USA. Corn yields in the USA continue to climb with the USDA now expecting to see an average yield of 11.38t/ha, a new record.

The USDA report showed world wheat ending stocks actually increasing from 258.96mt to 261.29mt.  The adjustment came as a result of an increase in Russian production from 68mt to 71mt that simply rolled across the balance sheet to their ending stocks column. Projected Russian wheat exports were left unchanged at 35mt.
The only other big change to a major exporter was to Australian wheat production which was pulled back 2mt to 20mt but was perfectly countered with a reduction of 2mt to expected exports which are now projected at 14mt.

Interesting to see Egypt pick up 235kt of Russian wheat prior to the USDA report hitting the market. Prices were said to have been higher than the last business by about US$5.00 / tonne. The lowest offer was US$222.70 and the highest offer US$230. Freight varied a little with the lowest execution costs at US$17.58.