Published on: 12:06PM Apr 05, 2010
If history repeats itself, then the June corn planted acreage report will be higher than the March prospective planted acres report. A study Allendale Inc performed suggest there is an average increase of 2% with a range of .02% to 3.5% since 2004 from the March to June acreage report. If we use an average of 2% of the 88.8 million prospective planted acres released on Wednesday, then the June corn planted acres maybe in an area of 90.58 million. See Chart
Before you pound the LDP table Allendale Inc’s research suggest end stocks to be 1.627 billion bushels which is 15% less than present end stocks when we use 88.8 million acres planted. End stocks to use projected on 88.8 million acres planted is 12% vs 15% for old crop and if we use 90.58 million acres planted then end stocks to use is elevated to 14.1% still less than the present marketing year of 15%.
We have been advising the use of box option strategies for corn and beans clients and make certain a plan is put in place when 60% of the crop is planted.
We welcome your questions and comments.........Joe Victor
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