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Informa releases bearish crop estimates, analyst says

Agriculture.com Staff 03/14/2008 @ 9:37am

Informa Economics, a private analyst firm, estimated U.S. 2008 corn acres at 87.5 million, soybeans 71.3 million.

Also, the private analyst firm estimated 2008 wheat acres at 63.5 million, above its previous estimate of 60.2 million.

Jason Ward, Northstar Commodity Investment Co., says the new acreage estimates are seen as bearish to the markets.

"The bean number is too high for the market. Following the release of the numbers, the soybean market hit limit down, corn dropped 12 cents then went up and then back down 16 cents," Ward says.

At mid-day, the CBOT May 2008 soybean futures contract is 44 cents lower at $13.59 per bushel. At one point this morning, soybean futures hit limit down.

CBOT May corn futures are down 14 1/2 cents at $5.55 per bushel.

The CBOT May wheat contract is down 60 cents at $11.80.

The latest USDA estimates are 64 million acres of wheat, 90 million corn and 71 million beans. Informa's last estimates were 60.2 million wheat, 90 million corn and 69 million beans, as of January.

Matt Pierce, Futures International LLC, says Informa's acreage numbers can have a market impact.

"But, unless they are drastically different than the previous private estimates of 85.0 million and 73.0, corn/soybean respectively, I think people throw the numbers aside. If we do see big variations, the market will react," he says.

Informa Economics, a private analyst firm, estimated U.S. 2008 corn acres at 87.5 million, soybeans 71.3 million.

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