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USDA Data Makes Corn, Soybean Markets Chop
DES MOINES, Iowa (Agriculture.com)--The U.S. farmers will plant a little more soybeans than expected and less corn than last year in 2014, according to the USDA.
The market reacted positively, right after the release of the report then turned negative. At 11:20 a.m., the nearby corn and soybean markets regained positive territory.
In its annual March 31 Planting Intentions Report, the USDA pegged the U.S. soybean acres at 81.5 million vs. the average analysts' estimate of 81.3 million acres and last year's acreage of 76.533 million.
For corn, the USDA sees 91.7 million acres) vs. the average analysts' estimate of 92.902 million and last year's 95.365 million.
All-wheat acreage is seen at 55.8 million acres, vs. the average analysts' estimate of 56.08 million and 56.15 last year.
The USDA pegged the U.S. 2014 corn stocks, as of March 1, at 7.066 billion bushels, up from 5.4 billion bushels on March 1, 2013.
For soybean stocks, the USDA sees 992 million bushels, vs. the average analysts estimate of 989 million bushels, and that is 0.9% from last year.
For 2014 wheat stockpiles, the USDA sees (1.055 billion bushels vs. 1.235 billion at this same time last year.
Peter Meyer, PIRA Energy Group grain analyst, says that the funds have muted a bullish response to the report.
"The implied corn demand was about 100 million more than expected, which was offset by lower-than-expected plantings at 91.7 million acres. I expect that corn acreage number to increase by at least 1.5 million acres in the June report. Soybeans and wheat numbers were pretty much in line with my expectations. While initially seen as bullish, especially corn, the Hedge Fund length in the market has muted the response," Meyer says.