June ’13 USDA Planted Acreage Report

Corn – Bearish
- The acreage projection of 97.4 million acres planted was well above the 95.3 million acres average estimate and slightly above the 97.2 million planted last year.
- The focus will turn predominately to weather and yield going forward. Despite a wet spring, crop conditions are on average above par for most of the corn-belt. Adequate soil moisture and a neutral weather forecast point towards positive crop development but late July temperatures and precipitation remain crucial during pollution for final yields.
- The projected ending stocks are expected to remain near 2 billion bushels which would be an enormous build versus the current market year of around 700 million.
Soybeans – Neutral
- The acreage projection of 77.7 million acres planted was slightly below the 78.0 million acres average estimate but just above the 77.2 million planted last year.
- Again weather is the primary focus with beans more sensitive to August precipitation and temperatures.
- The balance sheet for 13/14 is expected to loosen significantly with improved US production prospects and projected burdensome world supplies limit exports.
Wheat – Neutral
- The acreage projection of 56.5 million acres planted was slightly above the 55.8 million acres average estimate and the 55.7 million planted last year.
- The domestic ending stocks are more than adequate at 631 million bushels with large world output.