There's Plenty of Corn in the Ground and in Inventory
The USDA released two quarterly reports on Friday. First was the acreage report which updates the planting intentions report released in March, and the second was the quarterly stocks report which gives us a look at inventories as of June 1.
Viewing these reports together, two words could describe them: more corn. We ended up with more acres, beyond the average guess. More than a million acres were added with an official number of 90.89 million acres.
In its territory battle with soybeans, corn still wears the crown. Soybeans fell short - 89.51 is the official release, that was 440,000 acres short of the average guess but still 33,000 acres greater than what was reported in March.
A closer look at stocks again revealed more corn. 5.225 billion bushels is where we end up. That's 11% greater than where we were on June 1 of 2016 and higher than the average guess of 5.16. Soybeans came in at 963 million bushels, that's 10% greater than last year's inventory but 18 million bushels short of the average guess.
All wheat acreages fell short of the average guess by 345,000 acres, 330,000 of which were attributed to spring wheat declines. In the end, corn was up 11 to 12, soybeans were up 26 to 30 and wheat rose 28 to 30 cents.