USDA is estimating total corn acreage at 78 million acres - down 5 percent from last year. Corn prices rallied on the news since the reduction in acreage is about twice as much as traders anticipated. While corn acreage declines the government is predicting just the opposite for soybeans. According to USDA, farmers intend to plant 76.9 million acres of soybeans this year -- well above the 74 million acres expected by the trade. If realized, it would be North America's largest planting of soybeans on record.
All wheat plantings are estimated at 57.1 million acres, down slightly from 2005 and 1.2 million acres less than traders were expecting. If realized, it would be the lowest total wheat acreage since 1972.
Cotton producers are expected to plant 14.6 million acres in cotton this year. That figure is down slightly from last year, but pretty much in line with trade guesses.
USDA also released its quarterly stocks report this week indicating ample, if not burdensome, supplies of virtually all the major commodities.