Report sends corn 'limit' down
CHICAGO, Illinois (Agriculture.com)--The U.S. farmers will plant 97.3 million acres of corn and 77.1 million acres of soybeans in 2013, according to the USDA.
The market is reacting negatively: Corn has fallen to its daily 40¢ limit down; soybeans dropped 28¢ following the report; and the wheat market is down double-digits.
"The biggest surprise in this report is the higher-than-expected corn stocks and the smaller-than-expected soybean acreage number," Al Kluis, Kluis Publishing analyst says. "But, it's more important as to where we close today vs. where we are now."
In its March Planting Intentions Report and Quarterly Grain Stocks Reports, the USDA pegged the U.S. corn acreage at 97.3 million, compared to the average analysts' estimate of 97.3 million and last year's seedings of 97.2 million.
For soybeans, the USDA estimates 2013 acreage at 77.1 million, vs. the average analysts' estimate of 78.5 million and last year's seedings at 77.2 million.
All Wheat acres are estimated at 56.4 million, compared to the average analysts' estimate of 56.4 million and last year's seedings of 55.7 million.
In its report, the USDA pegged the U.S. corn stocks, as of March 1, at 5.40 billion bushels, compared to the average analyst estimate of 5.030 billion bushels.
For U.S. soybean stocks, the USDA estimates 1.00 billion bushels, compared to the average analysts' estimate of 947 million bushels.
USDA sees the U.S. wheat stocks, as of March 1, at 1.23 billion bushels vs. the average analysts estimate of 1.167 billion bushels.