The USDA shocked markets Wednesday with the release of their crop production report for August.

It shows corn and soybean yield well above pre-report expectations.

The USDA put its forecast of corn production up 156 million bushels from the July projection.

It also forecasts soybean production at 3.9 billion bushels, which is up 31 million.

Mike Davey, Market Analyst for Farmlink Marketing Solutions, says markets are never wrong, but time will tell how things work out.

"I think there is still lots of weather that needs to play out in soybeans/corn specifically and there's a lot of well inspected analysts in the US that are sticking to their guns and suggesting that in future reports, corn yield and bean yield will slip lower over time."

Davey said says this will a have negative influence on canola values, but the crop has a story of its own, with August weather being important for oilseed markets.

"We know there's highly variable conditions across western Canada in canola and you know crops that are being cut in many parts of the eastern region and yet there's crops that are still in flower in lots of locations further west."

Wheat, on the other hand, is down slightly from the July forecast.