About USDA Acreage report
Yesterday’s USDA numbers were neutral for corn, no matter what anybody tells you, those numbers were just about as neutral as they could be and bullish for beans.
Corn on hand June 1st was 3 million bushels more than the average estimate. This country uses 39.917 million bushels of corn every day. The extra 3 million will meet the needs of the USA for 1 hour and 48 minutes. Corn acres planted was 60,000 acres more than the average estimate. Using the same yield USDA used on their last S&D, which was 177 bushels per acre, 60,000 acres will produce 10.26 million bushels and that will be enough corn to meet the needs of the USA for 6 hours and 16 minutes.
The soybean inventory was 6 million bushels more than expected. That is enough beans to meet the needs of the USA for 11 hours and 29 minutes. Soybeans plantings were 2.121 million acres less than expected and 410,000 acres less than the lowest estimate. At the trend yield of 51.1 bushels per acre, the USA will produce 109.24 million fewer bushels of soybeans than the USDA used on their June Supply and Demand Report. The carryover will go from the current 22 day supply of old crop beans on hand at the end of the marketing year to a 13 day supply. When bean futures hit the all-time high of $17.89 on September 4th, 2012, the carryover was a 15 day supply. By the way, this hard break in prices is not destroying any demand.