USDA Confirms Record U.S. Soybean Plantings

(Iowa Farmer Today) – This spring, U.S. farmers planted a record high 89.5 million acres of soybeans while reducing corn acres by 3 percent compared to last year to 90.9 million, according to the latest USDA Acreage Report.

The 7 percent increase in soybean acres was within traders’ expectations for the June 30 report, but some had guessed even higher bean acres, said Jim Nemitz of Hiawatha, Iowa-based MSI Futures.

“There were really no major surprises,” Nemitz said of the reports.

Funds squaring short positions likely supported a June 30 soybean rally, he said.

In the June 1 Grain Stocks report, total corn stocks at 5.23 billion bushels, up 11 percent from a year ago, exceeded trade expectations, while total soybean stocks at 963 million bushels, up 11 percent from last year, were below expectations.

Nemitz said the ample old-crop supplies would likely limit rallies, but the stocks totals were also not surprising after last fall’s big harvest.

“We’ve got some good demand in here,” he said.

For May through March, corn disappearance was 3.4 billion bushels, up 9 percent from a year ago; soybean disappearance was 775 million bushels, up 18 percent from a year ago.

The USDA reported old-crop wheat stocks were up 21 percent at 1.18 billion bushels, but U.S. wheat acres fell 9 percent from last year to 45.7 million acres, the lowest since 1919.

“I think, right now, the forecast is going to take the front seat, now that the report is behind us,” Nemitz said. “I still think we need some weather premium dialed into this market.”

Nemitz said he is optimistic corn futures could still rally on the uncertain weather forecast.

He said the market has been trading as if a 170-bushel U.S. corn crop is already in the bin. But because of large old-crop supplies, it will take a significant weather scare to see a large rally.