Home / Markets / Markets Analysis / Soybeans market / Informa acreage estimate bullish for CBOT soybeans

Informa acreage estimate bullish for CBOT soybeans

Agriculture.com Staff 11/13/2007 @ 10:09am

CHICAGO, Illinois--On Tuesday, new U.S. Acreage numbers from private analyst firm Informa Economics is causing a positive reaction to the CBOT soybean market, a neutral-to-negative mark on the corn market.

At mid-day, the Jan '08 soybean contract is 15 1/4 cents higher at $10.61 per bushel.

In its estimate, Informa pegged the 2008 U.S. Soybean acres at 68.1 million, lower than its October estimate of 71.7 million but 4.4 million higher than last year. Joe Bedore, CBOT floor manager for FC Stone tells Agriculture Online the estimate is bullish for the soybean market.

"We are seeing, for a minute anyway, this divorcing from the energy markets that have been the driver of the grain markets. Crude and gold are down today, but the soybean markets want to go higher," Bedore says. "This is clearly a signal the market thinks the Informa number was too small for what our soybean demand is going to be next year."

For corn, Informa's estimate is 88.9 million acres for 2008, higher than its October estimate of 85.8 million, and lower than last year's acres by 4.7 million.

"Generally, the market thinks the switch to soybean acres was not enough to fill demand," Bedore says.

For wheat, Informa pegged 2008 acres at 64.1 million vs. 63.7 in October and 60.4 last year.

CHICAGO, Illinois--On Tuesday, new U.S. Acreage numbers from private analyst firm Informa Economics is causing a positive reaction to the CBOT soybean market, a neutral-to-negative mark on the corn market.

CancelPost Comment
MORE FROM AGRICULTURE.COM STAFF more +

Farm and ranch risk management resources By: 07/07/2010 @ 9:10am Government resources USDA Risk Management Agency Download free insurance program and…

Major types of crop insurance policies By: 07/07/2010 @ 9:10am Crop insurance for major field crops comes in two types: yield-based coverage that pays an…

Marketing 101 - Are options the right tool… By: 07/07/2010 @ 9:10am "If you are looking for a low risk way to protect yourself against prices moving either higher or…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
The Future of Livestock Production
Agriculture.com

FREE MEMBERSHIP!

CLOSE [X]