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Why such a bearish report?

DANIEL LOOKER 06/28/2013 @ 1:42pm Business Editor

The trade underestimated the acreage starting point before some soggy fields were abandoned, and farmers did all they could to avoid low prevented-planting crop insurance payments to get the crop in.

That's what's behind today's surprisingly bearish crop acreage report, says Don Roose of U.S. Commodities in West Des Moines, Iowa.

 "We probably started with more acres than the trade thought," he told Agriculture.com. "And the way crop insurance is structured, if it was possible, people planted corn."

Just a few minutes after the report, new crop (December) corn futures were down 22 cents a bushel and November beans were off by 10 cents; prices were trending down from that. Roose thinks wheat will be a bridge for feed needs between very tight stocks of old-crop corn and soybeans before harvest. "Positive old-crop numbers are negated by new crop because ending stocks are expected to grow to burdensome levels of corn and soybeans," Roose said.

Roose expects the next USDA projection of ending stocks in July to be over 2 billion bushels for 2013-14 corn carryout and over 300 million bushels for soybeans.

 "Weather is now probably going to determine the price outlook from here forward," Roose said. "On weather rallies, people are probably going to want to sell."

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Too wet 06/29/2013 @ 11:44am From Minnesota to Missouri I saw acres of corn with ponds in the low spots and corn that will be knee high by the 4th but that doesn't cut it anymore. Lot's of yellow, uneven corn. We don't need a frost until November. Good luck everyone.

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mark guildenzoph 06/28/2013 @ 2:41pm Sell what, you just seen the stock at a 16 year low because nobody has any to sell. Go figure another report with exaggerated numbers. I farm in central Illinois and like most with the extent of rainfall we planted soybeans in all ground effected do to the late season to begin with. Corn only has so many days to reach maturity doesn't any body else no this. Which means thousands of acres that would have been corn this year are now soybeans, and most of them are severely hurt do to the heavy rains. What is wrong with this system? All I can say is you better pray for a great come back on yields by harvest otherwise expect an all time low on the corn stock for next year. If any one else like myself can stay in business for that long with this disaster of a market. wow unbelievable

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