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USDA acreage estimates aren’t a shock to the grain markets

A market analyst says the planted acreage estimates from USDA at the Ag Outlook Forum haven’t had much of an impact on the grain markets.

USDA said U.S. planted corn acres are expected to be 91 million compared to 94.6 million last year, wheat acres at 47 million compared to 49.6 million last year and soybean acres at 87.5 million, a slight increase from last year’s 83.6 million.

However, Tim Marsh with Summit Commodities says the possibility of fewer corn and wheat acres and more soybean acres will capture the attention of a few traders until USDA releases its prospective plantings report at the end of March.  

“We’ve seen a number of private estimates that suggests the corn acreage will end up being larger than the 91 million acres and the bean acreage will be smaller than the 87.5 million and some wheat estimates that will likely deviate from what USDA has forecasted.”

He says grain traders have been anticipating USDA’s information for weeks.  

“Particularly on the corn, so it hasn’t had a pronounced negative affect. There was probably a fair amount of selling in the days leading up to these releases that has probably discounted these reports to a degree.”

Marsh says U.S. producers have the potential to produce a good crop this year, weather pending. And he says the only unknown that might adjust the U.S. corn market higher would be dry conditions negatively affecting South America’s second crop corn.

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