Soybean Production Cuts, Increased Corn Acres Puzzle Agriculture Stock Investors

By The Mays Report: By G C Mays

By T. Marc Schober:The USDA estimates in 2012 the U.S. will plant 95.9 million acres of corn, the most since before World War II. The record planting estimate surprised the market that was expecting more acres allocated to soybeans and spring wheat. Soybean planted acres decreased by a percent at the expense of the increased corn acres planted. The increase in corn acres in the Prospective Plantings report was bearish for corn, but the Quarterly Stocks report more than offset this increase. The U.S.

T. Marc Schober submits:Grain prices are back in the headlines and futures prices are limit up as the USDA updated their 2011 plantings and quarterly grain stocks. The USDA expects big increases in corn, wheat, and cotton acres as farmers attempt to capitalize on high grain prices.

By T. Marc Schober:Corn stocks were 14% below last year's levels and the lowest Q3 number since the 3.04 billion bushels in June of 1998, indicating strong global demand for corn. The USDA estimates in 2012 the U.S. will plant 96.4 million acres of corn, the most since 1937 when an estimated 97.2 million acres were planted; this came as no surprise as corn planted acres fell in line with analysts' expectations.

By T. Marc Schober:Corn, soybean and wheat prices all substantially decreased due to above average estimated quarterly stocks in today's USDA reports. The biggest surprise came with corn stocks of 5.40 billion bushels, 400 million bushels above analyst's average estimate. The Prospective Plantings Report held no surprises but continues to forecast a record corn crop. Prospective Plantings Report (click to enlarge)

By The Mays Report: When the USDA released its initial 2012/13 estimates for the U.S. and global wheat crop the agency said it expects higher wheat production in the US, offset by lower production around the world and resulting in lower global ending stocks. Initial estimates are provisional and subject to significant revisions because spring planting remains a work-in-progress in the Northern Hemisphere and is many months away below the equator.

By T. Marc Schober:The USDA updated the U.S. and world balance sheet estimates for major agricultural commodities in the World Agricultural Supply and Demand Estimates (WASDE) report Wednesday. The USDA stunned the market Wednesday by decreasing U.S. corn yields, although reduced U.S. corn demand helped settle the bullish tone. Corn

By The Mays Report: By G C Mays