January 25, 2010

US corn and soy acreage seen to increase; cuts wheat

Private analytical firm Informa Economics on Friday (Jan 22) increased projected US soy and corn acreage for 2010, while cutting projected winter wheat acreage, traders said.

The firm pegged 2010 soy acreage at 77.9 million, up from the 77.5 million acres the USDA said was planted last year, and higher than Informa's December estimate of 77.0 million.

The firm estimated corn acreage at 89.6 million, up just slightly from its estimate of 89.5 million last month and higher than the 86.5 million the USDA said was planted last year.

The increased acreage in those crops would come amid a reduction in wheat acres. Informa projected 2010 winter wheat acreage at 37.1 million, in line with the USDA's estimate earlier this month, and down from the 43.311 million planted in 2009.

After the USDA projected sharply lower winter wheat acreage earlier this month, traders said the reduction would likely mean farmers would add more corn and soy acres.

Global Commodity Analytics and Consulting president Mike Zuzolo said estimates are slightly bullish for soy, and neutral for corn and wheat.