USDA’s June Acreage report was a huge surprise to the trade. Soybean acreage was a record 77.73 million acres and wheat acreage was up 1-percent from a year ago to 56.5 million. However, the agency increased acreage for corn from the March intensions up to 97.38 million acres, which was above the highest trade guess. Jack Scoville with Price Futures Group in Chicago says the number isn’t believable because of the planting delays this spring and the amount of prevent plant acres that have already been certified by crop insurance adjustors.
Scoville says the extra corn acres came in Nebraska which was up 300,000 acres and marginal areas like the Delta and southeast U.S. that don’t have the highest yield potential.
He says with so many questions about the report USDA will have to resurvey the end of July for the August report.
Quarterly stocks were bullish as they were lowered for all three commodities, which just reinforced the already tight supply.