The U.S. Department of Agriculture (USDA) threw another set of curves for the CBOT, with lower-than-expected corn and higher-than-expected bean acres prompting limit up corn and 50-70 lower bean calls for opening. Adding to the price direction in corn and beans was the 200 million lower-than-expected corn stocks and 75 million higher bean stocks, suggesting higher corn feeding on likely strong chicken and hogs numbers (Friday's had 7% more market hogs). Meanwhile, the soybeans higher bean stocks suggest a 1 bushel yield underestimate of last years' crop, which means our 140 stocks are more likely at about 200-210.  Today's wheat stocks also number 4 million to 50 million more wheat bushels in the bins, so either the wheat crop was underestimated or feed usage is too low-or a combination of both.

Overall, corn could have two limits (30 cents now) off this report, but some caution is needed since beans spot May beans 11.89 January lows could be violated. This could mean another break to the $11.00 area, which could drag corn off its perch.  Wheat's acres and stocks suggests that Chicago July wheat could sink to the 8.00 to 8.50 range.

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