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Source: Rita Jane Gabbett, MEATINGPLACE, 3/28/13
Futures prices for corn and soybeans tumbled in midday trading on the Chicago Board of Trade as two key USDA reports
showed more corn available on March 1 than expected and farmers’ intentions to plant plenty more corn this spring.
Grain Stocks report
Corn stocks in all positions on March 1, 2013 totaled 5.4 billion bushels, down 10 percent from March 1,
2012, but well above the 5.0 billion bushels analysts, on average, were expecting, according to a Reuters analysts survey before the report.
The December 2012 - February 2013 indicated corn disappearance was estimated at 2.63 billion bushels,
compared with 3.62 billion bushels during the same period last year, according to USDA’s Grain Stocks report.
Ahead of the report, the Daily Livestock Report, published by Steve Meyer and Len Steiner Inc., noted a
number of reasons corn disappearance was lighter than a year ago, including: weaker corn exports, decreased ethanol production, declining feedlot inventories of cattle and more efficient feed additives creating better conversion rates.
Soybeans stored in all positions on March 1, 2013 totaled 999 million bushels, down 27 percent from
March 1, 2012, but above the 935 million bushels analysts were expecting.
Prospective Plantings report
Corn growers intend to plant 97.3 million acres of corn for all purposes in 2013, up slightly from last year and 6 percent higher than in 2011, according to USDA’s Prospective Planting report. On average, analysts expected 97.25 million acres.
If realized, this would represent the highest planted acreage of corn in the United States since 1936, when an estimated 102 million acres were planted.
Soybean planted area for 2013 is estimated at 77.1 million acres, down slightly from last year and also
below analysts’ average expectation of 78.39 million acres.
Price reaction
Futures traders found the reports bearish for corn and soybean prices.
Corn futures for May and July delivery dipped below $7.00 per bushel, falling 40 cents per bushel to
$6.95 and $6.76 respectively in midday trade.
Soybean futures for May and July delivery each dropped by over 50 cents per bushel to $14.02 and $13.80
respectively in midday trade.
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