USDA releases bullish soybean data
DES MOINES, Iowa (Agriculture.com)--In 2012, the U.S. farmers will plant the largest corn crop since World War II, according to the USDA.
As a result, CME Group floor traders are calling the opening commodity prices higher Friday.
The Early Calls for corn are 15-20 cents higher for old-crop contracts and 5-10 cents higher for new-crop. Soybeans are called 30-40 cents higher, and wheat is expected to open 15-20 cents higher.
In its March Prospective Planting Report Friday, the USDA estimates U.S. corn acreage at 95.9 million acres, compared to the average trade estimate of 94.7 million, and 91.921 million in 2011.
For soybeans, the governmental agency estimates U.S. 2012 acreage at 73.9 million, vs. the average trade estimate of 75.5 million and last year's 74.976 million acres.
USDA sees the 2012 U.S. All Wheat seedings at 55.9 million vs. the average trade estimate of 57.6 million and the 2011 acreage total of 54.409 million.
On Friday, the USDA pegged the 2012 U.S. corn stocks, as of March 1, at 6.01 billion bushels compared to the average trade estimate of 6.151 billion bushels.
For soybeans, the 2012 U.S. stocks are estimated at 1.37 billion bushels, vs. the average trade estimate of 1.381 billion bushels.
In its report, the USDA estimated the 2012 U.S. wheat stocks at 1.20 billion bushels vs. the average trade estimate of 1.235 billion bushels.
Tim Hannagan, PFGBest.com senior grain analyst, says that each market got something bullish and bearish. "So, look for a juggling act with bulls and bears. The lower corn stocks offsets the increase in planted acres, especially with the break prior the report."
Hannagan says the market will trade the report today and weather next week.
"When you come in Monday it's not what you plant but what you grow," Hannagan says.