Home / Markets / Markets Analysis / USDA report seen neutral to bullish for corn, soybeans and wheat

USDA report seen neutral to bullish for corn, soybeans and wheat

Agriculture.com Staff 06/30/2006 @ 6:56am

U.S. farmers planted about what traders thought this year, meaning the market is expected to react neutral to bullish to Friday's USDA Plantings and Stocks report, one analyst said.

For corn, USDA estimated 2006 planted acres at 79.366, in line with a range of trade estimates between 79.0-80.6 million acres. U.S. corn stocks, as of June 1, were estimated at 4.36 billion, equal to trade estimates of 4.36 billion bushels.

Don Roose, U.S. Commodities, said the report was neutral to positive overall. "Weather will trump this report," Roose said. "Weather is supportive this morning. This means we're going to add risk premium back into the market." Roose added, "There was nothing bearish in the report, so with weather and strong demand, call this report bullish."

On the corn numbers, Roose said the report calmed some traders fears. "I think everybody was thinking corn acres over 80 million with the ethanol demand, but high energy costs kept it down."

For soybeans, USDA estimated 2006 plantings at 74.93 million acres, within the trade estimates range of 74.2-76.5 million. Also, soybean stocks are estimated at 990 million bushels, below 1.01 billion bushel trade estimate.

Roose said, the report's acres' number is supportive and like the corn number nothing real negative. "The stocks number was lower than trade, but only by 22 million bushels. This is supportive to the market."

For wheat, USDA estimated 2006 acreage at 57.87 million acres, same as an average trade estimate of 57.8 million. Wheat stocks esimated by the USDA at 568 million bushels is above the trade estimates of 548 million bushels.

U.S. farmers planted about what traders thought this year, meaning the market is expected to react neutral to bullish to Friday's USDA Plantings and Stocks report, one analyst said.

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