USDA’s planted land estimates for corn catching the entire Agri industry unexpectedly on the end of June. The survey taken throughout the first two weeks of June noticed USDA calling for 91.7 million acres. That is solely one million acres fewer than it is March forecast and properly above the trade expectations for 86.6 million acres.
Arlan Suderman with INTL FC Stone telling AgDay’s Clinton Griffiths he thinks that acreage report should have been published.
Suderman says that doesn’t imply it did not present some value.
It tells us that on June 1, farmers were reading the tea leaves and that they knew that the basics are going to be suitable for corn however they’re not going to be ideal for soybeans, says Suderman. So they intended to change from soybeans to corn, and sadly they weren’t ready to try this as a lot as they’d like due to the persistent rains.
Suderman says the industry possible will not know how many prevent plant acres there are still August or maybe September.
“I think they’ll come out of each corn and soybean,” says Suderman. “What farmers had been attempting to get in was corn; however, they had a problem doing so.”
Whereas markets reacted strongly to USDA’s report, Suderman thinks ultimately there might be some form of balance.
“I feel a whole lot of it was unwinding spreads, and so that may settle down,” says Suderman. “I feel we’ll have lots of people wanting to purchase corn significantly feed consumers are joyful to see this break and corn costs because it permits them to get some extra coverage.”