Thursday, March 28, 2013

Grains Get Creamed Following USDA Report

Corn is limit down, wiping out all of March gains in ten minutes. Soybeans and wheat are also down sharply. Corn and wheat are both down more than 5% in the past few minutes. I was fortunate to get fills without a loss!
from Bloomberg:
U.S. farmers will sow fewer acres with soybeans this year, the government said, surprising analysts who were expecting a gain. Corn will get the most acreage since 1936, the U.S. Department of Agriculture said.
About 77.126 million acres will be sown with soybeans, down 0.1 percent from 77.198 million a year ago, the USDA said today in a report based on a survey of farmers. Analysts in a Bloomberg survey were expecting 78.351 million. Corn acreage will reach 97.282 million, up from 97.155 million last year, the agency said. The average analyst estimate was 97.339 million.
Soybean plantings fell in Minnesota, the third-biggest grower, and in every Great Plains state except North Dakota, offsetting increases in Iowa and Illinois, the two top producers. Prices for corn and soybeans are up this year, making the crops attractive for farmers who hope to replenish stockpiles after drought curbed production last year.
“If you have good yields, corn and beans are the best cash crops,” Mike Zuzolo, the president of Global Commodity Analytics & Consulting in Lafayette, Indiana, said in a telephone interview. “The drought fears are being pulled out now as we get more moisture across the U.S.”