July 1, 2008


USDA's higher acreage forecast bearish for CBOT grains


Traders said Monday's (June 30, 2008) USDA crop data were bearish for Chicago Board of Trade soy, corn and wheat futures.


CBOT corn is called to open 6-8 cents per bushel lower on a higher-than-expected acreage estimate from the USDA and larger-than-expected quarterly stocks. Soy futures are called to start 10-15 cents lower on a higher-than-expected acreage projection, and wheat futures are called 3-5 cents lower on spillover weakness.


The USDA increased its corn planted acreage projection by more than a million bushels from its March 31 report. Its soy projection was down slightly from the March 31 report, but above analysts' projections. Wheat acreage projections were mostly below expectations.


The USDA reported corn stocks as of June 1 as higher than expectations.

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