U.S. farmers have planted more corn than expected and less soybeans, though bean acres reached a record-high, according to the USDA Report Friday.
At midday, the Sept. corn futures are 2¢ higher at $3.71, and December futures are 2¾¢ higher at $3.82.
Aug. soybean futures are 20¾¢ higher at $9.41½; November soybean futures are 22¾¢ higher at $9.47.
September wheat futures are 20¼¢ higher at $5.16.
July soy meal futures are $8.30 per short ton higher at $304.70. July soy oil futures are 0.12¢ higher at 32.64¢ per pound.
In the outside markets, the Brent crude oil market is $0.59 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 77 points higher.
In its June Acreage and Quarterly Grain Stocks Reports, the USDA pegged the U.S. corn plantings above what the trade expected, while lowering soybean acres to levels expected by the trade.
U.S. 2017 PLANTINGS
For soybeans, the USDA estimated U.S. 2017 planting acreage at 88.7 million vs. USDA estimate in March of 89.5 million and last year’s acreage of 83.4 million.
For corn, the USDA sees U.S. plantings at 90.0 million vs. its March estimate of 89.9 million and 94.0 million a year ago.
USDA pegged the U.S. all-wheat plantings at 45.7 million, a new record-low, vs. its March estimate of 46.1 million and 50.1 million last year.
U.S. spring wheat acres dropped to 10.8 million vs. the USDA’s March estimate of 11.3 million.
U.S. JUNE 1 GRAIN STOCKS
On Friday, the USDA estimated the total of on-farm and off-farm grain stocks.
As of June 1, the U.S. corn stocks are 5.23 billion bushels vs. average analysts’ estimate of 5.12 billion.
For soybeans, USDA pegged stocks at 960 million bushels vs. average analysts’ estimate of 983 million.
U.S. wheat stocks, as of June 1, are estimated at 1.18 billion bushels vs. average analysts’ expectation of 1.137 billion bushels.
Brian Rydlund, CHS Hedging market analyst, says that the trade is surprised by more corn and not more soybeans.
“After the corn market sells off and soybean and wheat prices rally today, the trade’s focus will go back to crop-weather and the heat moving in to the extreme western Corn Belt,” Rydlund says.
Rydlund added, “There is some fear that the heat dome will move east in time over more of the Corn Belt. Considering late pollination and heat hanging around, it will be hard to break the corn prices too much.”
Jack Scoville, The PRICE Futures Group’s senior market analyst, says that the reports are bullish for soybeans on the acres, bearish corn.
“This report went the opposite direction from trade ideas of less corn and more beans. Beans deserve to be higher. Stocks less than expected, too. Corn stocks higher, and the acres are there,” Scoville says.
Scoville added, “It looks like maybe the weather is holding this market up today. Spring wheat acres flat but bullish, especially after StatsCanada’s drop in acres yesterday. The wheat market deserves to be in orbit.”
Source: Mike McGinnis, Agriculture.com
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