Trader expectations are calling for a repeat in corn acres and a dramatic increase in soybeans.
On Thursday, USDA will release its annual Prospective Plantings and quarterly Grain Stocks reports. While data is released for all major crops, the focus is definitely on corn acres.
Brian Grete, Pro Farmer senior market analyst, says that based on pre-report estimates, traders are expecting corn planting intentions to be right in line with year-ago, while soybean acreage is expected to be 1.3 million higher. "
Given those expectations, it will be hard for corn to get a bullish number, in my opinion," he says. "Soybeans could get a bullish surprise, however, if planting intentions don’t signal any more acreage than year-ago."
Grete says the big question will be where the corn acres are located and at what crops are expensed for corn. "The wildcard could be how many corn and soybean acres are picked up across the South at the expense of cotton and rice," he says." Historically, increased acres in the South are not viewed by traders in the same light as acres in the Corn Belt. "
Market analyst Sue Martin says unfavorable weather is already causing concerns in some parts of the country. She says if cooler weather sticks around, corn acres may shift to beans.
Hear more from Martin in this AgDay story:
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For More Information
AgWeb will continue its pre-report coverage of the March 28 Prospective Plantings report. Here are a few items to read now:
Prospective Plantings Preview: 10 Key States
Gulke’s Pre-Game Picks for the Planting Report
Preview of the Quarterly Stocks and Prospective Plantings Reports
See current market prices in AgWeb's Market Center