IARN — Grain futures soared upon the release of USDA’s Quarterly Grain Stocks and Acreage reports late Wednesday morning.
Allendale Commodity Broker Greg McBride tells IARN the acreage report shows farmers planted 92.7 million acres of corn, 87.6 million acres of soybeans, and 46.7 million acres of wheat this year.
“Quarterly Grain Stocks was nothing to really get overly excited about,” said McBride. “As expected is where they came in with the average guess. Just slightly below the average guess on corn, beans and wheat. The biggest surprise came with the acreage side of the report. We had an increase of 1.55 million acres in corn, but the average guess was looking for a 2.65 million acre increase. No change made really to the soybeans at 87.55. We were at 87.6 in March, so looking at that, that was actually below the lowest guess in the range of estimates.”
McBride says another surprise came in with wheat acreage.
“We saw an increase of 600,000 winter wheat acres,” said McBride. “A crop that was planted 8 to 10 months ago sees an increase of 600,000 acres. When it came to the total acres, only an increase of 900,000 acres for all crops, which is much below the average guess. We were looking for somewhere in the neighborhood of a 3.5-to-4.5-million-acre increase.”
As a result, McBride says grain futures were excited and soared higher.
“We saw limit up in December corn at one point,” said McBride. “We’re just off that limit right now. Soybeans are sitting at about 80 cents, about 20 cents off their limit. Wheat is just playing the follow game with nothing that was overly exciting, but getting caught in the emotion of the corn and beans right now.”
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
Story courtesy of the Iowa Agribusiness Radio Network
Photo by Dustin Hoffman
