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Recap of USDA report

Agriculture.com Staff 03/30/2007 @ 3:14pm

This week's USDA Acreage report contained some surprises with corn acreage at 90.45 million, above the pre-report estimate of 88 million but in line with the range of estimates of 86.3 to 90.75 million. Farmers should not be surprised that the number came out high.

We have anticipated that the acreage shift, due mainly to return on investment, could pull anywhere from 10 to 12 million acres into corn. On the other hand, the bean report was somewhat friendly with acreage at 67.14 million, down from the average estimate of 69.2 and below last year's plantings of 72.10.

Keep in mind, Friday's report is just an estimate. Weather and planting conditions could change dramatically between now and mid-June.

Soybeans have plenty of carryout, as has been confirmed on previous USDA Supply and Demand reports. Therefore, look for corn prices to remain range-bound to lower near term, with December potentially pushing down to $3.50 if planting progress goes well. If there is a wet/late spring, prices could jump up to $4.50. For soybeans, look for November futures to eventually lose ground and trade down closer to $7.00 November. From a historical perspective, November beans have not offered pricing opportunities on the board above $8.00 since 1988.

If you have any questions or comments, please contact Top Farmer at 1-800-TOP-FARM, ext. 129.

This week's USDA Acreage report contained some surprises with corn acreage at 90.45 million, above the pre-report estimate of 88 million but in line with the range of estimates of 86.3 to 90.75 million. Farmers should not be surprised that the number came out high.

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