USDA’s June acreage report caught grain traders by surprise. According to USDA survey data, farmers planted 92 million acres of corn. That’s an increase of three percent from last year, but five million acres below the USDA’s previous estimate of 97 million acres of corn. Commodity Risk Management Group market analyst Mike North says the most conservative grain traders weren’t expecting those numbers. “Traders had talked about a possible two to four million acre decline and we got a five million acre decline. That’s a big cut to the numbers,” says North. “Even when you take into account typical abandonment rates, that’s going to take 825 million bushels out of the balance sheet. Simultaneously in the grain stocks report for corn, we were able to increase that number enough to partially offset that.” USDA is estimating soybean planted area at 83.8 million acres, up 10 percent from last year. All wheat acres have declined from one year ago. Read the acreage report.
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