Prices take off after report
Friday's USDA report was an exciting one with soybean and wheat prices really taking off.
"They left the bean acreage basically the same," explained Wayne Nelson of L&M Commodities in New Market, Indiana. "Everybody was really looking for an increase in the bean acreage and so by doing that, we popped the beans quite a bit."
Moving forward, traders will be closely watching the early July weather. Some forecasters are calling for hot and dry conditions over the next 10 days, which would hit as the corn is pollinating. This will dictate which way prices move in the near term.
Nelson feels the current market climate will offer growers some opportunities. There is a possibility of corn reaching $4.00 and soybeans at $10.00.
The USDA report showed corn planted acres down three percent from last year with soybeans up seven percent from last year. All wheat is down nine percent. Soybean and wheat stocks were below trade expectations. Following Friday's report, beans were 23-26 cents higher, wheat 23 higher and corn 4 higher.
June Acreage and Grain Stocks Report for Illinois:
Corn: Planted area, at 11.10 million acres, is down 4 percent from 2016. Harvested area for grain, at 10.95 million acres, is also down 4 percent from last year.
Soybeans: Planted area, at 10.40 million acres, is up 3 percent from 2016. Harvested area, forecast at 10.34 million acres, is up 3 percent from the previous year.
Winter wheat: Planted area for 2017, estimated at 520,000 acres, unchanged from the previous year. Area harvested for grain is forecast at 490,000 acres, up 20,000 from previous year.
Hay: Harvested area of all hay is expected to total 500,000 acres, up 4 percent from 2016. This consists of 260,000 acres of alfalfa and 240,000 acres of all other hay.
Corn stocks in all positions on June 1, 2017 totaled 882 million bushels, up 30 percent from June 1, 2016. On-farm stocks totaled 385 million bushels, while off-farm stocks totaled 497 million bushels. The March -May 2017 indicated disappearance is 514 million bushels.
Soybean stocks in all positions on June 1, 2017 totaled 165 million bushels, up 18 percent from June 1, 2016. On-farm stocks totaled 44.0 million bushels, while off-farm stocks totaled 121 million bushels. The March - May 2017 indicated disappearance is 112 million bushels.
Old crop all wheat stocks in all positions on June 1, 2017 totaled 24.2 million bushels, up 44 percent from June 1, 2016. On-farm stocks totaled 400 thousand bushels, while off-farm stocks totaled 23.8 million bushels. The March - May 2017 indicated disappearance is 12.3 million bushels.
