This week’s USDA reports provided two pieces of price-plunging news: larger-than-expect grain stocks and record acreage estimates.
Following Thursday’s Prospective Plantings and Grain Stocks report, prices head south…way south. Corn prices dropped the most in nine months, which caused a domino effect for soybean and wheat prices.
Here are the highlights from USDA’s market-shaking March 28 reports:
Corn: 97.3 million acres of corn in 2013, which is up slightly from last year and 6% higher than in 2011. If realized, this will represent the highest planted acreage in the U.S. since 1936.
Soybeans: 77.1 million acres in 2013, down slightly from last year but the fourth highest on record. Compared with 2012, planted area is down across the Great Plains with the exception of North Dakota.
Wheat: All wheat acres are estimated at 56.4 million acres for 2013, up 1% from 2012. The 2013 winter wheat planted area, at 42.0 million acres, is 2% above last year and up slightly from the previous estimate.
Cotton: 10.0 million acres for 2013, 19% below last year.
Corn: Stocks in all positions on March 1, 2013 totaled 5.40 billion bushels, which compares to 8.03 billion bushels on Dec. 1 and 6.023 billion bushels on March 1, 2012.
Soybeans: Soybeans stored in all positions on March 1, 2013 totaled 999 million bushels, down 27% from March 1, 2012.
Wheat: All wheat stored in all positions on March 1, 2013 totaled 1.23 billion bushels, up 3% from a year ago.