Market News

Planting Intentions & Inventories

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The USDA released their estimates of current old crop inventories of corn, soybeans and wheat on March 30th.

Expectations of acres to be planted this spring for corn and soybeans was also released.

A small expansion of soybean planted acres and about a 2 million acre increase over last season's "rain delayed" corn acreage both came in near experts predictions.  The market mover from the report was a larger-than-expected old crop inventory of corn and soybeans.  These inventories suggest a larger carryout into harvest and triggered a huge sell off of nearly 10 cents in corn and about 30 cents in soybeans.  With these new numbers to base values on, exports not likely to grow, and the South American crop being harvested in a timely fashion, weather in the U.S. will be the main variable for the next few months.

Recommendation:  

Determine your return at current new crop prices and consider having 30-50% priced if it is acceptable.  Sell weather rallies.  Some are predicting harvest values under $8 a bushel.