April 3, 2017
On March 31,the USDA released its “Prospective Plantings Report”, as well as the “Quarterly Grain Stocks Report”. These were very highly anticipated USDA Reports, due to the uncertainty in grain prices in recent months, the potential for a significant increase in U.S. soybean acreage in 2017, and the likelihood of even larger increases in USDA estimated grain stocks in the coming year.
Typically, these late March USDA Reports are very critical to farm operators and grain traders because the reports tend to have a high impact on grain market prices in the Spring and early Summer. This is the time of the year when many farm operators try to sell remaining grain inventories from the previous growing season, as well as look for opportunities to forward price a portion of the anticipated crop for the current year. In a majority of years, corn and soybean prices usually reach their peak price from April until June, which is why the March 31st USDA Reports are so important.
Following are the key items from the March 31 USDA Reports :
Corn --- Indicated intended 2017 corn planted acres of nearly 90 million acres for 2016, which is a
decrease of 4 percent from the 94 million planted acres in 2016, but is still above the 88
million corn acres in 2015. The 2017 USDA corn acreage estimate was slightly below the
average grain trade estimate of just under 91 million acres. The highest U.S. corn acreage
recorded in the March 31 estimate was 97.2 million acres in both 2012 and 2013. The 2017
corn acreage is expected to decline in most major corn producing States.
The total U.S. corn stocks on March 1, 2017, were listed at over 8.62 billion bushels, which is
up about 10 percent, compared to the 7.8 billion bushels on March 1, 2016. The March 1st
USDA estimate was slightly above the grain trade estimates prior to the Report.
Soybeans --- Record soybean planted acres of 89.5 million acres are anticipated in 2017, which is an
increase of 7 percent from 83.4 million acres of soybeans in 2016, which was the
previous record acreage. The USDA projection exceeded the average grain trade estimate