The U.S. Department of Agriculture’s (USDA) Acreage Report showed different acreage numbers for farmers that planted corn, soybean and wheat in June.
As of June 30, farmers planted 90.9 million acres of corn, up from 89.9 million acres in March, yet down from 94 million acres year over the year. Soybean acreage rose to 88.7 million acres from 83.4 million acres in the year-ago period, but it dropped compared to 89.5 million acres in March. Wheat plantations both declined in terms of monthly and yearly comparisons, amounting to 45.7 million acres from 46.1 million acres in March and 50.1 million acres in June 2016.
Groups such as Exapta Solutions, Inc. that promote no-tilling farming say that the method may have had caused an increase in some of the crops’ acreage whether on a yearly or monthly basis. Still, the report showed no major surprising outcomes in the latest covered period. According to the USDA’s Grain Stocks report on June 1, corn stocks nationwide reached 5.23 billion bushels, up 11% year over year. The figure surpassed analysts’ estimated stocks of 5.12 billion.
Total soybean stocks also rose 11% in the same period, amounting to 960 million bushels compared to analysts’ forecast of 983 million. The USDA predicted U.S. wheat stocks to hit 1.18 billion bushels compared to analysts’ expectation of 1.137 billion bushels.
While the USDA report shows no surprising turn of events, some industry analysts shared their insights on some unexpected farming activity. For instance, the report presented a bullish market for soybeans and a bearish one for corn crops, according to Jack Scoville, The PRICE Futures Group’s senior market analyst.
However, MSI Futures analyst Jim Nemitz said that corn futures may still rally amid uncertainty over weather predictions in the short-term period.