AM Comments 09/17/13
Tuesday, September 17, 2013, 8:10 amSubmitted by: Dustin Weiner
Good morning!
The FSA released their acreage data early this morning and long story short, the data is friendly to both corn and soybeans – especially soybeans. After sifting through the numbers, the FSA data indicates US corn planted acreage to be around 95 million acres and US soybean planted acreage to be around 76.4 million acres. Keep in mind these numbers are estimates, almost guesses because not all acres are certified with the FSA. Those numbers listed above indicate that corn acres are down 2.4m acres from the last USDA report while soybean acres are down just under 0.8m acres.
The corn balance sheet can handle a reduction like this as supplies would still be ample, but the soybean balance sheet just got quite a bit tighter. **It is important to note that the USDA doesn’t exactly have to use this FSA data. The big question now is, did the USDA already have some of this factored in in their lower than normal “harvested acres” number earlier this month? We will have to wait till the Oct S&D report to find out…
Not much else for news. The weather is generally a bearish input as the market is hopeful these recent rains will add to pod weights in soybeans. Generally, early corn yields are better than expected which is also bearish.
Opening Calls
Corn 8 to 10 cents higher
Soybeans 12 to 15 cents higher
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