Good morning,
Corn is up 7 and soybeans are up 47 to start the week.
Markets are higher following soybeans as the USDA reduced acres by 4 million last Friday. Crop conditions are expected to be mixed this afternoon as rain has fallen in many of the drier areas of the Midwest.
Fridays USDA surprise did not come through stocks, which were reported to be slightly below the average trade guesses and opens the possibility for some minor downward revisions in old crop carry outs/new crop carry ins. Instead, the surprise came from acreage where planted corn acres were revised up more than 2 mln up to 94.1 mln, well above the average trade guess of 91.85 mln. Soybean acreage was slashed 4 mln down to 83.5 mln, well below the average trade guess of 97.67 mln. Nationally, between the two crops, we lost almost 2 mln planted acres vs. the March report. About 600k of those acres went to spring wheat and we saw a national uptick in planted hay acres of 1.35 mln. I guess you have to make hay while the sun shines… All together, we are looking at principal crop acreage is at 318.7 mln, the highest total since 2018.
Above normal rain is forecast by both the GFS and EU models this morning. Storm systems will move through the Midwest every few days this week. Temperatures will be cooler this week as a cold front has moved down from Canada.
You never know what the USDA will do, and Friday was a pretty big surprise. Cutting 4 million acres of beans and adding 2 million acres to corn has driven the corn/bean spread to the widest I have ever seen.
Have a Safe Day!
Garry Gard
920-348-6844
