Bullish acreage report issued
A bullish USDA acreage report Wednesday led to higher corn, soybeans and wheat prices late morning.
After the 11 a.m. release of the June 30 reports, beans were up by 80 cents and corn was limit up at 40. The acres really surprised everyone as they were lighter than expectations. The average trade guess was 93.7 million acres for corn, up from 91.1 in the March intentions report. The number did go up but only to 92.6 million corn acres planted this season.
Soybeans had an even bigger deviation from the average trade guess. The trade was looking for something around 89 million acres, which would have been up from March but it stayed right near where the intentions survey was at 87.6 million. This was a large shortfall from the expected acreage gains. This all impacted midweek markets in a positive way.
There is much dependency on what is ahead for new crop production. Also, weather will have a large impact on prices now as we approach the key pollination phase for corn. Camp said new money may be entering this space now that we’ve got some really big numbers out of the way.
Information on quarterly grain stocks inventories was also released. They were basically as expected with corn right on the average trade guess and soybeans a bit lighter.
USDA’s next WASDE update is scheduled for July 12.