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Acres Planted Are Higher Than 2003

posted on July 2, 2004


The much-anticipated acreage and stocks report from USDA staggered the markets at midweek. Pre-report guesses on planted acreage totals were low. But because the pace of planting was so rapid this year, many traders already have shifted their focus from planted acres to harvested acres. They know that final yield and production totals will be dictated by how well those planted acres survive ... and many already have been reduced by wet weather. Here's a closer look at the numbers.

Acres Planted Are Higher Than 2003 The U.S. Department of Agriculture's acreage and quarterly stock reports, released on Wednesday, showed that nearly all U.S farmers have completed corn and soybean planting for the year ... with acreage for both commodities higher than 2003.

Slug traders

Well above the average trade guess, the USDA puts the corn crop at 81 (M) million acres,. The increase can be attributed to good planting conditions, above normal temperatures and light rainfall in the Corn Belt.

The soybean crop -- at 74.8 (M) million acres is less than earlier forecast, but still at a record-breaking level. North Dakota planted an additional 550,000 acres for a state record-high of 3.7 million acres, while states such as Illinois and Indiana saw large declines.

The winter wheat total was 59.9 million acres ... above the average trade estimates. The USDA also raised acreage forecasts for both the other spring and winter wheat varieties.

In its quarterly grain stocks report, the USDA estimates corn stocks at 2.97 billion bushels, down slightly from the carryover stock numbers reported a year ago.

Soybean carryover was within the range of trade estimates at 410 million bushels, which is a 32 percent decrease from this time last year.

Traders regarded the numbers released this week as bearish for corn and wheat and neutral for soybeans.


Tags: agriculture corn crops markets news USDA