Source: Rita Jane Gabbett, MEATINGPLACE, 3/31/15

USDA released its quarterly Grain Stocks report today. Corn stocks on March 1 are estimated at 7.74 billion bushels, up 11 percent from last year.

According to J.P. Morgan analyst Ann Duignan, corn stocks were well above analysts’ consensus estimate of 7.61 billion bushels.

USDA’s annual Prospective Plantings report showed U.S. farmers intend to plant 2 percent less corn than last year, the third consecutive year of declining acreage and the lowest planted acreage in the United States since 2010.

Although expected corn planted area was down, the acreage was greater than analysts had expected.

Soybeans
USDA estimated soybean stocks at 1.33 billion bushels, up 34 percent from a year ago, but below analysts’ consensus of 1.35 billion bushels.

Soybean planted area for 2015 is forecast to be a record high 84.6 million acres, up 1 percent from last year, but lower than analysts had expected.

Prices
Corn and soybean prices have declined and leveled out over the past two years after drought-induced price run-ups that dramatically increased poultry and livestock feeding costs in the prior few years.

On March 10, USDA predicted the season-average farm price for corn at $3.50 to $3.90 per bushel, soybeans at $9.45 to $10.95 per bushel and soybean meal at $350 to $390 per short ton.

USDA will make its next price forecasts, which will take today’s reports into account, on April 9.

Corn futures prices fell on the Chicago Board of Trade by about 17 cents per bushel following today's reports, while soybean futures prices rose about 5 cents per bushel.

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