USDA-NASS released its June Acreage report this morning. The full report can be found at this link: http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1000
Pre-report expectations were for lower U.S. corn and higher soybean acres than shown in the March 31 Prospective Plantings report. The average trade guess for corn was 92.9 million acres. The June 30 Acreage report revealed total acres of 94.148. Some in the trade anticipated this given how quickly the majority of the U.S. crop was planted this spring.
U.S. soybean acreage was pegged at 83.688 million acres compared to 82.2 in the March 31 Prospective Plantings report. Given the surprising $3 per bushel rally in soybean prices that began in early March, it was anticipated that final soybean acreage would increase. The average pre-report guess for soybean acreage was 83.8 million.
Market reaction immediately following the report was 11 cents lower for corn and 35 cents higher for soybeans.
Rice and cotton market reaction has been lower following the report. Today’s report had cotton acreage increasing 461,000 acres above the March 31 intentions to a total of 10.023 million. Texas added 200,000, Georgia 150,000, and Arkansas 40,000 acres on top of March 31 intentions.
U.S. rice acreage was 148,000 acres above March intentions for a total of 3.212 million acres. Most of the increase in total rice area was attributed to a 120,000 acre increase in California medium grain acres. Long grain acres increased by 52,000 from March 31 with Louisiana, Mississippi and Texas adding acres. Surprisingly, there were no changes to Arkansas’ acres from March 31.