Takeaway

The presenter's core view is that the latest WASDE report did not contain any major shocks and largely confirmed the numbers the trade had already priced in. The USDA's downward revision of the corn yield to 178.5 bushels per acre is seen as a backtrack towards the Pro Farmer estimate, making it a "fair number" for now rather than a new market-moving catalyst.

What the presenter said

• The WASDE report numbers were largely in line with expectations and did not have many major shocks. [00:09]
• The presenter notes that the corn yield was adjusted lower, bringing it more in line with Pro Farmer's numbers. [00:17]
• The new corn yield is 178.5 bushels per acre, which is a 2.2 bushel decrease from the August WASDE report. [00:31]
• He argues that pre-market speculation was already focused on this specific number. [00:39]
• The market appears to view the 178.5 corn yield as a fair number for the time being. [00:47]
• The soybean yield was adjusted slightly higher to 52.8 bushels per acre, an increase of 0.1 from the August report. [01:03]
• This soybean yield of 52.8 is still below the Pro Farmer estimate of 53.3. [01:08]
• Despite being below the Pro Farmer figure, the presenter views 52.8 as a strong number for soybeans. [01:13]

Trade ideas

None stated. The presenter did not put forward an actionable trade idea, instead summarising that the market saw the WASDE numbers as fair and largely expected.

Levels and data cited

• WASDE Corn Yield: 178.5 bushels per acre
• WASDE Soybean Yield: 52.8 bushels per acre
• Pro Farmer Soybean Yield: 53.3 bushels per acre