In what will undoubtedly be a windfall of lower feed prices for livestock producers, USDA estimated U.S. corn acreage at 87 million acres, up 1 million acres from last year and well above both analysts' expectations and the 85 million acres USDA expected farmers to plant based on its poll of their intentions in March.

Corn futures prices fell the daily limit of 30 cents per bushel at the open on the Chicago Board of Trade after USDA's Acreage report was released.

"This is about the best news the hog industry has had all year long," University of Missouri livestock economist Ron Plain told Meatingplace, noting that feed prices will surely decline on the prospects that larger corn acreage will translate into more corn production.

He said higher prices were rationing corn use so far this year in anticipation of tight stocks from expected acreage reductions that did not materialize. 

USDA's acreage estimates are based on surveys conducted during the first two weeks of June on thousands of farms across the United States. At 87 million acres, this would be the second-largest corn acreage in more than 60 years.

USDA also estimated farmers sowed a record-high 77.5 million acres to soybeans, up 1.8 million acres from last year and up 1.5 million acres, or almost 2 percent, from the March planting intentions forecast.

USDA's August 12 Crop Production report will contain the first 2009 estimates of corn and soybean yield and production.

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