Prices skyrocket after bullish report
BLOOMINGTON – The March planting report was extremely friendly to crop prices on Wednesday morning.
The bullish response mainly came from USDA’s Prospective Plantings report which showed farmers intend to plant 91.1 million acres of corn and that was a couple million below the average trade guess. Soybean acres were even more below estimates at 87.6 million. Traders had anticipated closer to 90-91 million.
“We knew so many surprises could come out of that grain stocks report and we were almost getting overly bullish I felt coming into the acreage report,” Joe Camp of CommStock told The Central Illinois Farm Network on Wednesday.
The grain stocks numbers weren’t much different than what was expected going into the report. Average trade guesses were at around 7.7 billion bushels and over 1.5 billion bushels for corn and soybeans left over from the last quarter. On average, analysts were pretty much on track with USDA for this information.
Camp feels USDA is starting out conservative as they know they will need to bring in prevent plant acres from the previous two years. Wheat acres came in higher than anticipated. Some of the crops were expected to be borrowed from wheat but maybe not as much now.
Next up is another WASDE report in a couple of weeks after focusing on the numbers in the acreage report. Planting weather here in the U.S. will also be closely monitored over the next several weeks.