The USDA updated their supply and demand projections on Friday, updating their yield expectations and adjusting ending stocks. The report itself was relatively benign, with ending stocks coming in as expected for the most part. Some may argue the USDA numbers are pointless, but they provide the most in-depth framework when it comes to domestic and global supply and demand, and they are what the market trades.
The August report always carries a certain level of importance with it, as it is the first supply and demand outlook put together using yield data provided by NASS. From May through July, the World Ag Outlook Board is responsible for yield estimates, using trendline yields and making limited adjustments without extenuating circumstances.
