Huge grain reserves shielded futures markets from the effects of flooding in the Midwestern United States, with traders mostly ignoring reports of the terrible effects of flooding.

According to Tom Grisafi, Advance Trading Advisor for Stock Market Marketing, the fact is that commodity markets are oversaturated with grain.

The latest U.S. Department of Agriculture (USDA) report on US grain stocks showed that as of December 1, 2018, soybean deliveries to the domestic market were a record 3.736 billion bushels.

Corn stocks amounted to 11.952 billion bushels, which is 4.9% less than a year earlier, but still remain in third place, and wheat stocks amounted to 1.999 billion bushels, which is the second highest in 31 years. US corn, wheat, and soybeans have helped curb skyrocketing prices this week. The U.S. Department of Agriculture linked soybean exports in a marketing year to 254 million bushels due to a trade war with China.

In its latest demand report, the USDA lowered its forecast for corn use by 100 million bushels, with 75 million coming from export forecasts and 25 million from lower demand in the ethanol sector. The forecast for wheat exports has also been reduced by 35 million bushels.

For reference: a bushel is a unit of volume used in the English system of measures. It is used to measure bulk goods, mainly agricultural, but not for liquids. In the American system of measures for bulk bodies: 1 bushel = 35.2393 liters.