Wednesday, March 31, 2021

Planting Intentions Report: Where Did The Acres Go? (plus a caution for speculators)

CAUTION: It is very early in the 2021 Ag season and farmers have been known to read the news and decide they might just plant a bit more.

From AgWeb:

Where Did the Acres Go? A State-by-State Breakdown of USDA's Prospective Planting Results

USDA's Prospective Plantings report released Wednesday, March 31 shows farmers intend to plant more acres overall in 2021. However, the survey results for corn and soybean acreage came in lower than what the trade expected.  

Highlights of the first USDA farmer-based acreage survey of 2021 include: 

  • Corn: 91.1 million acres, up less than 1% from 2020
  • Soybeans: 87.6 million acres, up 5% from 2020
  • All wheat: 46.4 million acres, up 5% from 2020
  • All cotton: 12.0 million acres, down less than 1% from 2020


Also at AgWeb:

USDA Chief Economist Explains Surprises in March Acreage Report

USDA's Prospective Plantings Report released Wednesday threw some surprises to the market. And as a result, commodity prices exploded, with both corn and soybeans closing limit up on Wednesday. 

The first farmer survey-based report of the year shows farmers intend to plant 91.1 million acres of corn and 87.6 million acres of soybeans. Both of those results were below trade expectations. The report also indicated farmers intend to plant 12 million acres of cotton, and the all wheat acres number came in at 46.4 million. 

USDA chief economist Seth Meyer says leading into the report, the agency expected higher prices to incentivize farmers to plant more acres this year....


Seriously, regarding the caution, some of these "Aw shucks" good old boys have a couple masters degrees from Iowa State in the barn and play a high stakes game that makes the World Series of Poker look like Old Maid in comparison.