The long-awaited Grain Stocks and Acreage reports are out from the U.S. Department of Agriculture, holding some surprises for the trade.
Market analyst Alan Brugler says there were major shifts in the surveys in acreage than what the trade was thinking, that ended up being bearish for corn and bullish for soybeans.
Corn acres are estimated at 91.7 million acres, up 3% from last year. The trade thought it would be four million acres fewer.
In stocks, corn in all positions totaled 5.2 billion bushels, down 2% from last year.
Soybean acres are estimated at 80 million acres, down 10% from last year and the lowest planted acreage since 2013, but the trade thought there would be four million acres more.
Soybeans stored in all positions are at 1.79 billion bushels, up 47% from last year.
Brugler says, “We do know that the implied prevent plant is over 10 million acres. But the allocation of that between corn and beans in terms of actual planting behaviors is way off of what the trade was thinking.”