Markets are slightly higher to start with corn up 2 and soybeans up 5. This comes as little consolation after Friday’s large selloff following the USDA report. (report below)
Higher estimates of March 1 stocks and 2019 acres sent the markets lower on Friday. The March 1st stocks showed on farm stocks above last year with farmers owning 60% of the corn, 47% of the soybeans and 23% of the wheat. Corn saw the biggest jump in acreage with an increase of 3.6 million acres. Planting intentions for “principal crops” came in at 315.4 million acres which is down 4.2 million from 2018.
Based on satellite data it is estimated that 1 million acres of farmland was flooded from the Dakotas to Missouri and beyond due to the weather in March. While this is a large area, there is plenty of time for much of it to dry up and be planted this spring. This is why traders have not added any premium to the markets based on this flooding.
Quarterly Stocks (billion bushels)
March 2019 Average Estimate March 2018
Corn 8.605 8.335 8.892
Soybeans 2.716 2.683 2.109
Wheat 1.591 1.555 1.495
US planting Intentions (million acres)
USDA March 2019 Average Estimate USDA 2018 Final
Corn 92.792 91.332 89.129
Soybeans 84.617 86.169 89.196
Wheat 47.339 46.915 47.800
Have a Safe Day!