According to the USDA crop acreage report released last Friday, corn growers increased acreage by 2 percent from their March intentions to 79.4 million acres. That’s an increase of 1.347 million acres compared to the March estimate. But a decrease of 2.393 million acres when compared to acres planted in 2005.
Soybeans acres dropped 3 percent or 1.965 million acres from the March report. Soybean acres total 74.93 million. However, that’s also 2.788 million more acres than
The change in corn acreage is about what the market expected. And while the drop in soybean acres was expected, the 1.9 million acre decline is at the upper end of the market estimate and is the largest decline in soybean acres from the March to the June reports during the last 10 years.
Weather and crop conditions will now be the driving factors for market direction.
To read the complete USDA report, go to: http://usda.mannlib.cornell.edu/reports/nassr/field/pcp-bba/acrg0606.pdf
Or, to read the weekly crop outlook column from the