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Informa: U.S. corn acres to drop 6.0 million in 2008

Agriculture.com Staff 12/14/2007 @ 10:06am

U.S. producers will plant 6.0 million fewer corn acres and increase by the same the soybean acres in 2008 compared to a year ago, Informa Economics estimated Friday.

Informa, in its newly released acreage survey, estimated U.S. 2008 corn acres at 87.4 million, below its November estimate of 88.9 million, and 6.0 million below a year ago, CBOT floor traders say. For soybeans, Informa raised its November estimate by 2.0 million to 70.0 million total acres. This is 6.0 million above last year’s USDA-estimated soybean acres.

For wheat, Informa estimated 2008 acres at 48.7 million, unchanged from its November estimate, 3.7 million above a year ago.

As of mid-day, the Informa acreage estimates failed to impact the CBOT futures trading.

At mid-day, the CBOT Mar corn futures are steady at $4.35 per bushel. The Jan soybean futures are 4 1/2 cents higher at $11.50 1/2. The Mar wheat futures are 6 1/2 cents lower at $9.47.

On Friday, the new-crop wheat contracts traded sharply lower, due to rain in the Plains’ states, and profit-taking.

Matt Pierce, Futures International LLC says the July '08 wheat contract was dipped 25 cents and May up 3 cents.

"Locals that were long the July, short the May and March contracts were getting out. "A lot of firms had their risk managers come to the floor and tell their guys to get out at the open," Pierce says. These guys have lost $0.70 in three trade sessions, so they are being forced out."

Also, better than expected rains across the Soft Red Wheat Belt which is going to recharge the soil moisture heading into hybernation, Pierce says.

On the front month, the Mar wheat contract touched $9.69, but failed to get above the contract high of $9.70 1/2, so people are taking profits, Pierce says.

U.S. producers will plant 6.0 million fewer corn acres and increase by the same the soybean acres in 2008 compared to a year ago, Informa Economics estimated Friday.

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