Corn futures are building on the report day gains, up 2 cents or more to start the midweek session. Corn futures rallied in the last hour yesterday for 3 to 3 1/4 cent gains at the close. December futures traded with a 16 1/4 cent range on the day, as prices were red going into the report before rallying all the way to $5.64. Preliminary OI shows that the gains yesterday were predominantly short covering, dropping 8,303 contracts.  

USDA raised the national average corn yield by half a bushel to what would be a record 177.0/acre. At the state level, NASS reported WA steady at the top at 225 bpa, with no change to ID or IL at 214 and 207 respectively. IA was upped 1 bpa to 201. In the Dakotas, NASS raised SD by 4 to 137 bpa and ND by 1 to 108. MN was up 4.5% at 186 bushels per acre. The net effect was for 43 mbu boost to output now at 15.062 bbu, where the trade was looking for 15.05. Domestic carryout was tightened by 7 mbu as a 50 mbu rise in projected ethanol use offset the bigger crop. 

USDA raised estimated global ending stocks 2.68 MMT to 304.42 MMT. The U.S. market share shrank to 31.2% of global exports, which were raised to 203.4 MMT. 

Dec 21 Corn  closed at $5.54 3/4, up 3 1/4 cents, up 2 ½ this morning

Nearby Cash  was $5.37 1/6 on Tuesday, up 3 1/2 cents,

Mar 22 Corn  closed at $5.64 1/4, up 3 1/4 cents, up 2 ¾ this morning

May 22 Corn  closed at $5.69 1/4, up 3 1/4 cents, up 2 ½ this morning