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
Allendale Inc welcomes any questions you may have by calling 800-551-4626 or
click below to learn more about us...
The thoughts expressed and the basic data from which they are drawn are believed to be reliable but cannot be guaranteed. Any opinions expressed herein are subject to change without notice. Hypothetical or simulated performance results have certain inherent limitations. Simulated results do not represent actual trading. Simulated trading programs are subject to the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Commodity trading may not be suitable for recipients of this publication. This is not a solicitation of the purchase or sale of any commodities. Those acting on this information are responsible for their own actions. Any republication, or other use of this information and thoughts expressed herein without the written permission of Allendale, Inc., is strictly prohibited. Allendale Inc. c2010