Bullish USDA data, traders say
CHICAGO, Illinois (Agriculture.com)--U.S. farmers will plant 92.2 million acres of corn in 2011, according to the USDA. That is above what the trade expected. However, tight stock estimates have this Report bullish for corn and soybeans. Overall, the government's Planting Intentions Report Thursday is seen as bullish for the CME Group grain and soybean markets.
Early calls are: Corn up the 30 cent daily limit, for old-crop contracts, soybeans up the daily 70 cent limit, and wheat to follow, according to CME Group floor traders.
In its annual Prospective Plantings Intentions Report, the USDA estimates the 2011 U.S. corn acres at 92.2 million, compared to the average trade estimate of 91.662 million, and the 2010 corn seedings of 88.192 million.
For soybeans, the USDA sees the U.S. farmers planting 76.6 million acres, vs. the average trade estimate of 76.969 million and the 2010 seedings of 77.404.
USDA sees the U.S. wheat farmers sowing 58.0 million acres, compared to the average trade estimate of 41.150 million.
The U.S. cotton growers are expected to seed 12.6 million acres in 2011, vs. the average trade estimate of 13.12 million and the 2010 seedings total of 10.97 million.
Quarterly Grain Stocks
On Thursday, the USDA estimates the 2010-11 U.S. corn stocks at 6.52 billion bushels, compared to the average trade estimate of 6.701 billion bushels and the 2010 March stocks of 7.694 billion bushels.
As of March 1, the 2011 U.S. soybean stocks are pegged at 1.25 billion bushels, vs. the average trade estimate of 1.295 billion bushels, and the 1.270 billion bushels, at this time a year ago.
The USDA estimates the U.S. 2011 wheat quarterly stocks at 1.42 billion bushels, compared to the average trade estimate of 1.399 billion bushels and 1.356 billion bushels, at this same time a year ago.