Market News & Headlines >> USDA Reports Friendly for Soy, Negative for Corn
The annual Crop Acreage and Grain Stocks reports released on June 30 were negative on balance for the corn and wheat markets and friendly for the soybean market relative to pre-report trade expectations, but the markets quickly returned to trading weather, focusing on expanding drought in the U.S. northern Plains.
USDA pegged U.S. corn plantings at 90.896 million acres, up about 900,000 from the March planting intentions and toward the high end of trade expectations that averaged 89.78 million acres in a range from 89.00-90.61 million acres. Plantings are now estimated to be down 4.001 million acres from 2016, but still about 800,000 acres from the 2015 level. June 1 U.S. corn stocks came in at 5.225 billion bushels versus trade expectations that averaged 5.123 billion in a range from 4.690-5.360 billion. June 1 corn stocks were up 10.9% from 4.711 billion a year earlier and were the highest in 30 years.
USDA pegged June 1 U.S. wheat stocks at 1.184 billion bushels, at the high end of trade expectations that averaged 1.137 billion bushels in a range from 968 million to 1.185 billion bushels. June 1 wheat stocks were up 21.3% from a year earlier and were also the highest in 30 years. The Crop Acreage report was neutral to friendly for wheat at it showed U.S. all-wheat seedings at 45.7 million acres compared with trade estimates that averaged 46.0 million in a range from 45.50-47.40 million according to a Bloomberg survey.
U.S. 2017 soybean plantings were estimated by USDA at 89.513 million acres, up marginally from the March planting intentions of 89.482 million, but toward the low side of trade expectations that averaged 89.860 million acres in a range from 88.900-91.000 million. It is important to remember though that USDA’s survey was taken during the first two weeks of June and may not have caught some late switching of acreage into soybeans due to weather issues.
USDA pegged June 1 soybean stocks at 963 million bushels, up 91 million bushels or 10.4% from a year earlier, but toward the low end of trade estimates that averaged 983 million bushels in a range from 870 million to 1.119 billion bushels. June 1 soybean stocks were still the largest in 10 years and the third highest on record.