Joe Victor is a Business Development Specialist with Minneapolis Grain Exchange, Inc., where he monitors cash grain activity and cash grain opportunities. He provides marketing advice through this blog.
Planted Acres instead of Prospective Plantings
Jun 13, 2011
On Thursday, June 30, 2011 the United States Department of Agriculture (USDA) is scheduled to release "Acreage", a report on major, planted U.S. crops. The acreage report includes actual acres planted, versus the March estimate of planted acres. These numbers can vary for a number a reasons including the world economy and weather events.
The June planted Acreage report is a separate report from the monthly release of the USDA’s World Agriculture Supply and Demand Estimates (WASDE). On June 9, 2011 the USDA WASDE estimated a monthly acreage reduction for corn and all wheat. However, the WASDE report did not estimate a reduction in soybeans. Each year dating back to 2000 and also including 1996, the USDA has not altered the number for all wheat acreage. The 1996 WASDE report is a good comparison because of weather similarities between 1996 and 2011. USDA lowered corn planting acreage in the June 2011 WASDE, as well as in the 2002 and 1996 WASDE reports. Subsequently, in 1996 and 2002, the WASDE report estimated an increase in soybeans.
When the USDA lowered the corn planted acreage in its WASDE report, the June Acreage report increased the acreage above the WASDE estimate in 2002 and 1996. In 1996, the acreage results were above the prospective acreage report for corn, soybeans and other spring wheat, even though wet weather created delayed plantings.
Of the 12 years identified from the Prospective Plantings to the Acreage reports, corn acreage increased 75 percent, soybeans decreased 58 percent and
other spring wheat remained the same.
MGEX welcomes your questions.........Joe Victor
Information used to compile this update is from publicly available sources. Nothing contained herein should be construed as a trading recommendation of MGEX, its employee or its members. For informational purposes only.