The USDA released its January WASDE report Tuesday morning.

Dan Basse is president of AgResource Company in Chicago.

"The report came out as bullish. The big shocker was the drop of U.S. corn yield of about 3.8 bushels an acre. That cut 325 million bushels from U.S. corn production, a sizable number looking back to the November estimate and got the corn market rising. We also found that feed residual consumption, that feed usage in the first quarter...was also record large. Not only did we lose a lot of corn, but we also found this strong demand component for domestic use."

Basse notes corn futures in Chicago were up 25 cents (daily limit) at mid-day.