July 3, 2023

US soybean planting falls short of projections, corn acreage increases

According to reports issued by the US Department of Agriculture (USDA), American farmers are planting fewer acres of soybeans than previously anticipated, while increasing the acreage for corn, MarketScreener reported.

The USDA's latest acreage report forecasts that farmers will plant 83.5 million acres of soybeans, 94.1 million acres of corn, and 49.6 million acres of wheat. The estimate for soybean acreage is notably lower than the 87.45 million acres projected by the USDA in March, whereas corn acreage exceeds the March forecast of 88.58 million acres.

Analysts surveyed had predicted corn acreage at 91.81 million acres, soybean acreage at 87.66 million acres, and wheat acreage at 49.65 million acres, indicating deviations from the USDA's figures.

Additionally, the USDA released its quarterly stocks report, revealing a decline in grain stocks compared to the same period last year. Corn stocks as of June 1 were estimated at 4.11 billion bushels, soybean stocks at 796 million bushels, and wheat stocks at 580 million bushels. These figures fall below the estimates provided by surveyed analysts.

The publication of these reports has led to significant volatility in grain futures trading on the Chicago Board of Trade. Most-active soybean futures experienced a 5.5% increase, rising from a 2% increase prior to the reports' release. Conversely, corn futures dropped by 2.9% after showing a 0.6% increase pre-report, and wheat futures decreased by 1% following a 0.6% increase pre-report.

-      MarketScreener