Markets were quiet overnight after yesterday’s action following the USDA report. Corn was down 2 in old crop and up 2 in new crop overnight.
USDA 2022 Planting Intentions (million acres)
|USDA March||Average Trade Est.|
USDA March 1 Stocks (Billion Bushels)
|March 2022||Average Trade Est.||March 2021|
Yesterday’s USDA Plantings report was clearly bullish for the corn market and bearish for soybeans, while being neutral for wheat. The quarterly Grain Stocks report, in a pleasant development was mostly a non-event for corn, wheat and soybeans as no major surprises were seen. USDA estimated 2022/23 U.S. corn planted area at 89.490 million acres, down nearly 3.9 million acres from last year’s 93.357 million, 2.5 million acres less than average market expectations heading into the report of 92.0 million and would be the lowest in four years – certainly a difficult acceptance with corn prices at decade-high levels and insurance guarantees near record high for the coming year’s crop.
We could see deviations in final acreage numbers from March estimates as has been the case in recent history. Most of yesterday’s survey numbers were taken prior to the Russian invasion of Ukraine which have resulted in a new crop rally that has certainly bought acres. In the last 10 years we have added acres 8 times from the March to June planting reports.
Have a Safe Day!