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Published: Mon, April 03, 2017
Economy | By Melissa Porter

USDA Report Shows Record Soybean Acreage And…..

USDA Report Shows Record Soybean Acreage And…..

If realized, that would top last year's soybean acreage of 83.433 million, which is the biggest to date. Compared with previous year, planted acreage intentions are up or unchanged in 27 of the 31 estimating states.

"Record low USA wheat plantings combined with record large global wheat consumption rates could provide interesting opportunities for investors in wheat markets for the remainder of 2017", he said. "Stocks build continues to weigh on the market as well - wheat stocks up 21% year-over-year is pretty unbelievable, given the lower acres last year". Corn acres in OH are expected to remain flat. Alabama plans 450,000 soybean acres, and that'd be about 7 percent more than a year ago. However, the USDA's Farm Service Agency, which takes farmers' official reports of what the planted and is considered the most accurate tally, told the Capital Journal recently that winter wheat acres planted last fall totaled only 850,000, which would be the lowest since 1972 based on NASS data. "Given the strong carryover entering this growing season, the drop in planted acres demonstrates how farmers can react to market conditions", National Corn Growers Association President Wesley Spurlock said. A year ago corn stocks were 7.82 billion bushels.

On soybeans, analysts predict a supply of 1.684 billion bushels, which would be the second-highest on record behind 2007, and 10 percent larger than March 1, 2016. The average of analysts' forecasts was 46.139 million wheat acres.

On a quarterly basis, soybeans have dropped 4 percent, losing much of the gains made in the last quarter of 2016.

South Dakota and North Dakota farmers together produce about 80 percent of the nation's sunflowers, but this year are going separate ways, according to Friday's intentions report.

Michael Rusch, Sales Director- Ag/Commercial for Stewart-Peterson, says that the corn market reaction to the report is surprising.

Soybean planted area for 2017 is estimated at a record high of 89.5 million acres. "But the USDA's March 31 release of the planting intentions report showing the smallest number of planted wheat acres since records began...might provide future support to wheat prices, which are also being buoyed by a year-over-year demand increase of 13% in the December through February time period". Flaxseed production is also set for a large reduction in acreage, with only 3,000 acres expected compared to 10,000 acres planted in 2016.

Wheat futures ended Friday slightly higher with the May CBOT contract up 5-1/2 cents at $4.26-1/2 per bushel. In Nebraska, soybeans totaled 137.7 million bushels.

Analysts, on average, had expected soybean stocks of 1.684 billion bushels, corn stocks of 8.534 billion bushels and wheat stocks of 1.627 billion bushels. A year ago, corn stocks were 7.822 billion bushels.

Wheat stored in all positions totaled 61.8 million bushels, up 45 percent from a year ago.

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