The USDA released its February World Agricultural Supply and Demand Estimates (WASDE) report Friday morning.
President of AgResource Company in Chicago, Dan Basse says U.S. corn and soybean yields are down.
"Soybean yield fell half a bushel per acre, corn almost two and a half, so that was supportive to the overall theme but then as we looked at the demand side of things, the Chinese soybean import number was dropped two million metric tonnes. Brazil's crop came down five million metric tonnes to 117 million metric tonnes, while the Argentinian corn crop got record large at 46 million metric tonnes."
Basse says U.S. farmers also decided to plant their lowest amount of winter wheat in 110 years.
He adds now they're just waiting to see what will happen in the U.S. - Chinese trade negotiations next week.