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Making Sense of the USDA’s Planted Acres Report
The USDA report last week was one of the better curveballs we have seen in the past few years. Traders were expecting to see corn acres near 86.6 million. The USDA reported corn acres at 91.7 million acres. How could this be close at all?
Well, the USDA did say that the 91.7 was acres planted and intended to plant. So, the report last week felt more like a combination of the March planting intentions report and the June planted acreage report. The extremely wet spring was noted as reason the USDA will resurvey planted acres. Those results will be announced in the August 12 monthly supply and demand report.
Corn prices had a wild few minutes just after the crop report was released last Friday. Prices had a 31¢ range in the first five minutes. The bearishness of the acres was enough that corn actually traded limit down for a short time.
The holiday-shortened week was slightly concerning for many traders as they were expecting light volume. The bears could have easily pushed prices through support, however, that did not happen. December corn futures have managed to hold major support so far. Read the Successful Marketing Newsletter to see where those support levels sit.