The International Grains Council this week reduced its estimates of world grain stocks for both corn and wheat. While global wheat production was projected to rise slightly, ending stocks are predicted to decline by 12 million metric tons. Noting that U.S. corn production could rise above earlier forecasts, world corn ending stocks are estimated to be 28 million metric tons below last year. The report offers producers a snapshot of global supply and demand. A domestic measuring stick also was issued this week, in the form of private acreage estimates.
USDA's last acreage report on March 31st called for a reduction in corn and wheat plantings and an increase in soybean acres. The estimates were friendly to the coarse grains, but pressured soybean prices.
This week, private estimates went the other way. Memphis-based Informa Economics claims U.S. farmers planted more acres of corn and spring wheat, but fewer acres of soybeans. The private research and analysis firm based its estimates on producer surveys and planting progress through mid-May.
According to Informa, U.S. growers will plant 79.8 million acres of corn...that's 1.8 million above USDA's March guess, but 1.9 million acres less than last year.
Soybean producers are expected to plant 75.3 million acres, 1.6 million fewer than USDA's estimate, but 3.2 million above 2005.
Informa predicts spring wheat will be planted on 14.75 million acres, up 850 thousand acres from USDA projections and 713,000 acres more than last season.
Total wheat plantings are estimated at 58.2 million acres. That's about one million more acres than USDA predicted and 950,000 more than last year.
USDA will release its next acreage report on June 30th.