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U.S. to lower corn acres by 1.5 million, analyst says

Agriculture.com Staff 03/24/2006 @ 1:34pm

A 1.5 million acre reduction in U.S. corn acres was forecast by Allendale Inc. on Friday. If realized, that would be the biggest one year reduction since 2001. For corn usage, a 2.871 billion bushel estimate would be the second largest since the 1998/1999 marketing year. However, March 1 stocks are the largest since 1988 when 7.636 billion in stocks were reported.

For soybeans, the U.S. would see its third-largest soybean acres due to a 2.06 million acre estimate. If realized, that would create the largest one year increase since 1997. Allendale estimated 2nd quarter soybean usage of 839 million bushels, less than the five-year average of 879 million bushels. This leaves the largest March 1 stocks in history.

The total wheat acres were estimated at the second lowest since 1972. Plus, the 3rd quarter wheat usage of 466 million bushels is just over the five year average of 448 million bushels.

Actual Prospective Plantings in Million Acres
  Trade Range Ave Est Allendale Actual 03/31/06
Corn     80.254 81.759  
Soybeans     74.202 72.142  
All Wheat     58.361 57.229  
Winter Wheat     41.407 40.433  
Durum     2.750 2.760  
Other Spring     14.204

14.036

 

Quarterly Grain Stocks in Billion Bushels
  Trade Range Ave Est Allendale 12/05 03/05 Actual 03/31/06
Wheat     .964 1.430 .984  
Corn     6.942 9.813 6.756  
Beans     1.663 2.502 1.381  

A 1.5 million acre reduction in U.S. corn acres was forecast by Allendale Inc. on Friday. If realized, that would be the biggest one year reduction since 2001. For corn usage, a 2.871 billion bushel estimate would be the second largest since the 1998/1999 marketing year. However, March 1 stocks are the largest since 1988 when 7.636 billion in stocks were reported.

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