In its June Seed & Stocks Reports Friday, the USDA estimates the U.S. 2012 corn acreage at 96.4 million acres vs. the average trade estimate of 95.962 million and the government's March estimate of 95.864 million.
For soybeans, the U.S. 2012 acreage is estimated at 76.1 million vs. the average trade estimate of 75.575 million and the USDA's previous estimate of 73.902 million.
USDA pegged the U.S. 2012 All Wheat acreage at 56.0 million vs. the average trade estimate of 56.851 million and the March estimate of 55.908 million.
U.S. Grain Stocks
U.S. corn inventories on June 1 fell to the lowest level since 2004, and U.S. soybean inventories on June 1 are the highest since 2008, according to the USDA data.
For corn, U.S. stocks were estimated at 3.148 billion bushels, down from the USDA's March estimate of 6.009 billion bushels.
Soybean inventories, as of June 1, are estimated at 667 million bushels vs. the average trade estimate of 640 million bushels and the USDA's March estimate of 1.372 billion bushels.
Reaction
Jason Ward, Northstar Commodity analyst, says the Report is being considered a bit negative for the markets.
"Acres were in-line with expectations, a little negative to soybeans. But, our view is some of the intended double crop acres won’t get planted, unless rain develops south of I-80 where wheat was," Ward says.
Grain Stocks were supportive to corn, neutral wheat/soybeans, Ward says.
"I didn’t see anything too negative in the report but the Spring Wheat acres were pretty friendly," Ward says.
Sal Gilbertie, Teucrium Funds analyst, says that in spite of high planted acreage, the report shows corn inventories continuing to tighten versus last year, which brings the intensity of the Midwestern drought into focus for traders and end users.
However, the trade believes the weather is a bigger factor than today's USDA Report.
