“Monster” Corn Crop

USDA’s planted acreage report out this morning estimates the second largest corn crop since 1946 at 87.0 million acres, up 1 percent from last year but 7 percent below 2007.

Analysts are calling the report bearish for corn futures, according to Dow Jones, which quotes Country Hedging analyst Sterling Smith saying, “We do have a monster crop out there.”

Analysts said the report showed that the USDA underestimated acreage in its March planting intentions report. The trade has for weeks been expecting a loss of corn acreage of 1 million acres or more, although in recent days there has been increased talk about a more modest reduction or even an increase.

For soybeans, USDA says farmers have planted a record-high 77.5 million acres, up 1.8 million acres from last year and up 1.5 million acres – almost two percent – from the March estimate. Despite the increases in both crops, total U.S. crop area is down 1.2 percent from last year.

The corn crop is also doing better than last year in some of the major states. The Iowa Corn Growers Association reports that crop conditions are far better than last year. “According to the Iowa Secretary of Agriculture, nearly all corn planted in Iowa has emerged with 81% of the crop rated excellent and an average height of 37 inches- well above “knee high by the 4th of July.” The extended weather outlook seems favorable for near-perfect corn growing weather.”

Progress in the states where corn planting was delayed by wet weather is behind normal, but the crop is still in good shape. Illinois and Indiana are reporting the crop running a little slow but the condition is rated around 60 percent good to excellent.