Farmers tell USDA, ?We are not planting as many corn and bean acres as traders expected.?
The quarterly stocks were slightly smaller than expected for corn and slightly larger on beans and wheat. No surprises in the Stocks report.
Source: USDA, Reuters, StoneX
Although corn acres are up less than 0.5%, four out of the top five states cut corn acres.
Farmers decided to plant 5.4% more soybeans nationally and increased acres in each of the top five bean states.
The surprise came in the wheat complex, where acreage was up 3.4% from the last estimate and a whopping 8.8% from last year.
The bullishness in today?s reports is a little surprising, since acreage can certainly increase between now and the June report. By boosting the prices, traders will encourage the additional corn and bean acres the marketplace wants.
How about the Buy Signals on soybeans, meal, and wheat this morning?
Our strategy is to make an increment of sales on the next Sell Signal, which should be just around the corner.
Source: All Slides from the USDA Executive Summary
For full USDA reports, click on links below.
Grain Stocks Prospective Plantings