Monday, July 09, 2007

Acreage Amount Surprise Markets

From the University of Illinois Farmdoc updates:

The USDA’s June 29 report of planted acreage provided some significant
surprises. The report showed more acres of feed grains and fewer acres of
soybeans, cotton, and spring wheat than had been anticipated.
Planted acreage
of corn is estimated at 92.888 million acres, 2.434 million more than indicated
in the March Prospective Plantings report and 14.561 million more than planted
in 2006. Acreage exceeded intentions by 300,000 to 400,000 acres in Illinois,
Indiana, Iowa, Minnesota, and Ohio. Planted acreage of sorghum, at 7.765 million
is 656,000 above March intentions and 1.243 million more than planted in
2006.
The Acreage report projected corn area harvested for grain in 2007 at
85.418 million acres, 14.77 million more than harvested in 2006. If the U.S.
average yield is near the USDA’s calculated trend value of 150 bushels, the 2007
harvested could total 12.8 billion bushels. A yield of only 152.2 bushels would
be required to produce a crop of 13 billion bushels. On June 11, the USDA
projected that corn consumption during the 2007-08 marketing year would total
12.465 billion bushels. If the remainder of the 2007 growing season is
favorable, the crop will be large enough to result in some build-up in
inventories during the year ahead.

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