The October World Agricultural Supply and Demand Estimates report delivered another round of adjustments to US corn and soybean yields. Yield cuts were larger than expected and ending stocks for both products ended up tighter than forecasted.

USDA pegged corn yields at 173.0 bushels per acre, down slightly from 173.8 bpa in September and just below forecasts for 173.5 bpa. Reports from fields suggest conditions vary from place to place, with dryness over the summer denting yields in parts of the country. Still, overall output looks healthy, and USDA expects ending stocks to reach 2.111 billion bushels.