Almost all crop futures were trading higher on Friday following major reports from the U.S. Department of Agriculture, but the true bullish numbers were in spring wheat on lower than expected seeded area and soybeans on lower than expected quarterly stocks.
USDA pegged spring wheat acreage at 10.899 million acres, down from its March estimate of 11.308 million acres and below the low end of analysts expectations that ranged from 10.990 million to 11.589 million. In 1972, the last time spring wheat plantings were below the 2017 total, farmers planted 10.138 million acres.
Minneapolis spring wheat futures at about 10:30 CST were trading at US$7.75 in the most traded September contract, up 36 cents. New crop December was trading at $765, up 33 3/4 cents. Spring wheat futures have been soaring in recent days on worries about drought in the U.S. Northern Plains.
U.S. farmers seeded a record amount of soybeans this spring, the government said on Friday, amid hopes that strong export demand would soak up much of the harvest this fall despite bumper crops in Brazil and Argentina that have swelled global stocks. However the soy seeded area was less than what the trade expected and corn area was higher than expected and higher than the USDA’s March planting intentions report.
Soybean futures were trading up about 2.85 percent and canola was tagging along, with July at C$543 per tonne, up $13 or 2.45 percent. November was trading near $495 , up $11.10 or about 2.35 percent.
All-wheat plantings fell to a record low of 45.657 million acres, with ample global stocks and weak export prospects pushed U.S. farmers away from that crop.
Supplies for all three commodities remained robust, with stocks of both corn and soybeans as of June 1 the third biggest ever for the period. Wheat stocks as of June 1 were the largest in 29 years.
USDA said farmers planted 90.886 million acres of corn, up 890,000 acres from the government’s March forecast. Analysts had expected 89.903 million acres, according to the average of analysts estimates in a Reuters poll.
Soybean plantings came in at 89.513 million acres compared to analysts’ estimates of 89.750 million. In March, USDA had forecast soy plantings of 89.482 million.
On the supply front, corn stocks as of June 1 were 5.225 billion bushels, up from 4.711 billion bu. a year earlier and the most since 1987. The trade had expected 5.123 billion
Soybean stocks were 963 million bu., up from 872 million a year earlier. The trade expected 983 million .
The June 1 soy stocks reading was the biggest in 10 years.
Wheat stocks rose to 1.184 billion bu. from 976 million a year earlier. The trade had expected 1.137 billion bu.
The USDA said durum seeded area was 1.919 million acres, down from 2.004 million in the March prospective planting report and down from last year’s 2.412 million.
Canola seeded area is 2.16 million acres, up from 1.927 in the March report and up from last year’s 1.714.