Grain futures were sharply lower across the board last week as traders had positioned themselves for shortages because of Midwest flooding and increasing demand from emerging markets and China.

Instead, corn stocks were 11% bigger than analysts expected and a bumper crop could be on the way according to the "Acreage" and "Grain Stocks" reports released by USDA last week.

The U.S. corn supply is far larger than thought and a bumper crop could be on the way, USDA says in a report that shocked traders and shoved grain markets sharply lower.

The dramatic turnaround from fears of bare-bones supplies could signal comfortable supply levels for the coming year and ease fears about high world food prices.

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