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CHICAGO, Illinois (Agriculture Online)--It's being called the most significant USDA report in a long long time, according to market participants.
On Monday, the USDA will estimate how many acres the U.S. corn, soybeans, and wheat producers will plant this year. The data is based on farmer surveys.
Agriculture Online caught up with some market participants at the Chicago Board of Trade and asked them to characterize the importance of USDA's report to the current marketplace. Vic Lespinasse, Grainanalyst.com, says the report could move the markets a mile.
Vic Lespinasse, Grainanalyst.com
History shows that the data for U.S. corn plantings the USDA issues on Monday will most likely be increased in the June plantings report.
Joe Victor, vice president of marketing for commodity research firm Allendale, says in the past four years, the USDA has increased its forecast for corn acreage from March to June.
"The average of the increases is 1.48 million acres," Victor says.
Victor says U.S. farmers are very capable of switching planting intentions.
Joe Victor, Allendale Inc.
For soybeans, USDA lowers its acreage numbers by 1.0 million or more from March to June, Victor says.
In its latest estimate, USDA pegged 2008 corn acres at 90.0 million, above private analyst firm Informa's estimate of 87.5 million, and above the American Farm Bureau's estimate of 88.0 million.
For soybeans, USDA last pegged the U.S. plantings at 71.0 million. That is within Informa's estimate of 71.3, AFBF's 69.5 million, and other analysts average estimates of 73.0 million.
In 2007, U.S. farmers planted 93.6 million corn acres and harvested 86.5 million. The 2007 soybean planted acres equaled 63.6 million, and 62.8 harvested.